HomeMy WebLinkAboutmini-packet_Nuisance Abatement Board Meeting_20240620161016027 1) Revocation of Business License 024-751 Issued to Medcare Farms
Find and declare Medcare Farms, located at 29395 Hunco Way, a public nuisance and
uphold the City's revocation of business license 024-751.
Locational Map
Exibit A
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CASE NO: 23-1499
ADDRESS: 29295 Hunco Way
CITY: Lake Elsinore. CA. 92530
APN: 377-120-043
Exhibit B
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Exhibit C
NOTICES/DOCUMENTS
STATE OF CALIFORNIA 11 Pit
—1 CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION GAVIN NEWSOM
1521 W CAMERON AVE.STE 300 WEST COVINA,CA 91790-2738 Governor
1-909-264-7663 AMY TONG
www.cdfa.ca.gov Secretary Government Operations Agency
NICO,LAS MADUROS
Director
MEDCARE FARMS 2.0, LLC Letter Date: January 29, 2024
29395 HUNCO WAY Letter ID: L0024765268
LAKE ELSINORE CA 92530-2756 Account Type: Sales and Use Tax
Account Number: 252-296960
Collection ID: 3226687
Notice of Revocation
Dear Taxpayer:
The California Department of Tax and Fee Administration (CDTFA) revoked your Sales and Use Tax permit on January
29, 2024, as prescribed under the Revenue and Taxation Code.
Because your seller's permit is now revoked, it is illegal for you to make sales of tangible personal property in California
per Revenue and Taxation Code section 6071. If you (corporate officers included) continue to make sales without a valid
Seller's permit, you may be subject to fines of up to $5,000 for each sale. We have also begun the process of cancelling
other licenses that have been issued to you by us and any dealer's licenses issued by the Department of Moto-Vehicles
(DMV).
Our records indicate that you:
l did not make your payment in the amount of$1,194,918.26.
What should i do now?
Pay all the amounts Owed to us by logging in at onlineservices.cdtfa.ca.gov and selecting File & Maki a Payment. if you
are unable to access the Internet, you can submit the payment to your local CDTFA office at the address above. -
To reinstate your permit, log in to your account at onlineservices,catfa.ca.gov to electronically file all late reiu'ns and pay
all amounts owed for all the accounts issued to you by CDTFA. You must file a return even if you have no activity to
report.
Additionally:
You must pay the reinstatement fee of$100.00 for each one of your locations.
If you believe you have received this letter in error or your business has closed, please contact your local office at the o
telephone number listed above. 00
10
For additional information, please read publication 54, Collection Procedures, or publication 74, Closing Out Your n
Account, at www.cdtfa.ca.gov.
N
Sincerely,
Lizbeth Rodriguez
Tax Compliance Specialist
Cannabis and Sales Suppression Bureau
•
CDTFA-433-S1 REV.5(1-23)
b L0041-9
Front
CITY QF01-1
LAME
DREAM EXTREME
April 03, 2024
Medcare Farms 2.0, LLC Medcare Farms 2.0, LLC
Attn: Garin Heslop & Kelly Heslop Attn: Garin Heslop
Managers and Agent for Service of Process 1440 Columbia St. #2208
29395 Hunco Way San Diego, CA 92101
Lake Elsinore, CA 92530
Subject: Expiration of Business License—Medcare Farms 2.0
To Whom It May Concern:
On behalf of the City of Lake Elsinore, you are hereby notified that the business license
issued to Medcare Farms 2.0, LLC (Business License Number 024751) has expired and will not
be renewed pursuant to Lake Elsinore Municipal Code ("LEMC") sections 5.08.290(A),(B),(D)
and 17.156.040(A). Business License Number 024751 was issued to you on January 1, 2023, for
Medcare Farms 2.0 located at 29395 Hunco Way, Lake Elsinore, CA 92530-2756 for a cannabis
retail store.
Your business license expired on December 31,2023 and has not been timely renewed. As
such, it expired and is invalid. Any cannabis business permit issued by the City is also revoked.
The City is unable to renew the business license even if an application were submitted because 1)
the applicant or holder of the license or permit is subject to outstanding fees owed to the City,
currently totaling $1,107.742.01 and 2) a violation of the LEMC exists by virtue of the State's
revocation of the business's permit(s)and failure to comply with the LEMC, as discussed below.
In addition, the City has received the attached Notice of Revocation from the State of
California Department of Tax and Fee Administration dated January 29, 2024 stating that your
Sales and Use Tax permit was revoked. Pursuant to LEMC sections 17.156.040(A)and 5.08.060,
revocation of a State license is grounds for the City to refuse to renew and/or revoke permits or
licenses issued by the City, and also makes the continued operation of this business a violation of
State law and the LEMC.
Due to the expiration of your business license and revocation of any associated license and
permit, you are prohibited as of the date of this notice from operating in the City. Pursuant to the
LEMC,including but not limited to,sections 5.08.020,5.08.060, 5.28.010,and 17.156.040,et seq.,
it is unlawful for the owner or occupant to cause, allow or maintain the use of a property for a
cannabis business without a valid cannabis business permit and a valid business license.
Therefore,all business operations lacking all required licenses, permits and approvals must
immediately cease. If operations continue in violation of the LEMC, the City may take action to
enforce the law and will seek recovery of any costs, attorney's fees or other costs incurred in this
process.
1
Any appeal of the City's determination must be submitted pursuant to LEMC section
5.08.300. Failure to timely and properly appeal will result in waiver of the right to appeal.
incerely,
ill�
h on Buckley
A ' tant City Manager
Enclosure
2
STATE OF CALIFORNIA
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION GAVIN NeWSOM
GovMnor
1521 W CAMERON AVE,STE 300 WEST COVINA,CA 91790-2738
1-909-264-7663 AMY TONG
www.cdtfa.ca.gov Secretary,Government Operations Agency
NICOLAS MADUROS
Director
MEDCARE FARMS 2.0, LLC Letter Date: January 29, 2024
29395 HUNCO WAY Letter ID: L0024765268
LAKE ELSINORE CA 92530-2756 Account Type: Sales and Use Tax
Account Number: 252-296960
Collection ID: 3226687
Notice of Revocation
Dear Taxpayer:
The California Department of Tax and Fee Administration (CDTFA)revoked your Sales and Use Tax permit on January
29,2024, as prescribed under the Revenue and Taxation Code.
Because your seller's permit is now revoked, it is illegal for you to make sales of tangible personal property in California ;_
per Revenue and Taxation Code section 6071. If you (corporate officers included)continue to make sales without a valid ie
seller's permit,you may be subject to fines of up to$5,000 for each sale.We have also begun the process of cancelling e�
other licenses that have been issued to you by us and any dealer's licenses issued by the Department of Motor Vehicles —
(DMV).
Our records indicate that you:
did not make your payment in the amount of$1,194,918.26.
What should I do now?
Pay all the amounts owed to us by logging in at onlineservices.cdtfa.ca.gov and selecting File &Make a Payment. If you
are unable to access the Internet, you can submit the payment to your local CDTFA office at the address above.
To reinstate your permit, log in to your account at onlineservices.cdtfa.ca.govto electronically file all late returns and pay
all amounts owed for all the accounts issued to you by CDTFA.You must file a return even if you have no activity to
report.
Additionally:
You must pay the reinstatement fee of$100.00 for each one of your locations.
If you believe you have received this letter in error or your business has closed, please contact your local office at the o
telephone number listed above. 00
For additional information, please read publication 54, Collection Procedures, or publication 74, Closing Out Your
Account, at www.cdtfa.ca.gov.
N
O
Sincerely, O
Lizbeth Rodriguez
Tax Compliance Specialist
Cannabis and Sales Suppression Bureau
CDTFA-433-S1 REV.5(1-23)
bt-0041-9
Front
CITY OF
LADE ,LSI110R E For Official Use Only
DREAM EXTREME
IV Date Received: l'1�
City Clerk's Office
130 S.Main Street, Lake Elsinore, CA Received By: , a ThPJ�w
(951)674-3124, Ext. 269 ,L
Date Fee Paid:
APPEAL OF NUISANCE ABATEMENT BOARD FORM
P.Policy 100-8:The purpose of this Policy is to provide a standardized procedure for consideration of appeals
from Nuisance Abatement Board decisions. Within 15 calendar days of a Nuisance Abatement Board
decision,any person may appeal a decision to the City Council by filing this form and submitting a$244.05 fee.
A copy of this policy is attached with further important information.
Applicant Information
Name: G of 1(1 14 e5�0 Q Date: y 15 2
Mailing Address: 2 G '_5 r1C'C) tkJ L
City: l ak ehlno(e State: CCU- Zip Code:qZS 30
Phone No.: 95I . 5-15 535JFax No.: E-Mail:� i gave-A �a er � ^
a s.c a
Suble1ct of Appeal Information
Subject of Appeal: oess 1 ICe
n-RI,
Project No.(s): X Gi n e SS b' ccas C Z�-l�l Sl
Project Applicant: M(!J,Coce fi3,ZyyAS Z L- LC
Project Location: 2 R ICI S U�C� S l Y)o�e Cct 9 Z• 30
Date of Nuisance Abatement Board Action: 0 Z rP l e
I,the undersigned, hereby appeal the above action of approval/denial by the Lake Elsinore Nuisance
Abatement Board, for the following reasons: (Please cite specific action being appealed.) Attach
additional pages as needed.
++a he k
Signature:
City of Lake Elsinore Appeal of Nuisance Abatement Board Form
Attention: City of Lake Elsinore Staff&Shannon Buckley Assistant City Manager
Subject: Appeal of city decision of non-renewal and revocation of Medcare Farms 2.0 LLC,
Business License Number 024751.
Medcare Farms 2.0 LLC,was mailed a letterdated April 03,2024 statingtheir business
License was expired and will not be renewed, due to not being renewed on time as well as
owing outstanding community benefitfees, and a notice from the CDTFAregardingtheir
Sales and Tax permit being revoked.
We are appealingforthefollowing reasons:
1. Business license not renewed on time:We did paythrough the online portal and
when they did not receive the license by mail;they reached out asked for a copy,
they were told even though fees were paid,to receive a copy of license the city
benefit fees needed to be paid in full.
2. City benefitfees owed: Medcare Farms understands they owe$1,107,742.01,
although they have paid in total$989,252.00 thus far and would like to negotiate a
reasonable payment plan to get back in good standing and having our city license to
generate revenue to make a payment plan is a keyfactor in this issue.
3. CDFTA Sellers Permit Revocation: Medcare Farms 2.0 LLC is currently under an
auditwith the CDFTA and can operate untilthe outcome of the audit is established.
Medcare Farms understands the seriousness of these outlined issues and wantto
continue to assert ourcommitmentto operating in fullcompliancewith all local and state
regulations and express our intention to resolve any issues promptlyand efficiently as
possible.We intend to engage constructively with city officials on this matter. Medcare
would like to formally request a review of the decision and hope you can consider our
proactive efforts to comply with all regulations and approve to issue our business license.
We are fully prepared to present all necessary documentation and evidence to support our
appeal.
CITY OF^W-Sq,
LADE �LSII`�O�L-
LAKE osit Fee D Receipt
�. e p / p
Clerk's Department
130 South Main Street
Lake Elsinore, CA 92530
P 951.674.3124
F 951.471.1418
Date _ Ll��� lu-1-4
Name ( C(ay- .✓1 4-�25�o Phone( -51 5-is
Address 3 �'S 4,AnC-0 wgz&l Apt./Ste.
City/State/Zip Ua-lt.- IS"VILaN-0- C Ps 6t-a-S3n
Description Q ) NV.%C,omu kbl n&t_ L]5wdd 1��
ACCOUNT ITEM DESCRIPTION QTY CODE AMOUNT
100-1100-4214 COPIES NUMBER OF PAGES: CP $
100-9999-4805 NOTARY SERVICES 1 OR $
310-9999-4710 POSTAGE FM $
100-1100-4805 MISC REVENUE MR-Prompt $
100-1100-4160 FILING FEE FF-Clerk $ _
100-1100-4224 APPEAL FEE MR-Prompt $
100-1100-4253 PASSPORT EXECUTION FEE PE $
100-1100-4253 PASSPORT PHOTO FEE PE $
100-1100-4254 CIVIL CEREMONIES WITNESS FEE _ CCW $
TOTAL: $ a- S
-C. 1 Mt Ti i j> y — r7 If T. -TJ
% 1 TI I in .-• 0 (i� -n II to ts1 r: 7i -I
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'L4 cr.,I - T � FriII I 2:
DUE TO CITY POLICY - fees must be collected for established S*rvicei 9KO fot?,0pie3 gi en to,_
I .I II -ti.,lil ITS
the Public. There is a 2.75% convenience fee for all credit card tranoctjgns.I r?i _> II I I:[.�_; r-
I � u ;r !�!
t r:l
Checks can be made payable to the City of Lake Elsinore. C13;
n =: I I o
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If paying by cash, the amount must be exact. `-,•� 1 II
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City of Lake Elsinore
CITY OF Code Enforcement Division
130 S. Main Street
LADE OLSINOPE Lake Elsinore, CA 92530
—� Tel: (951) 674-3124 ext. 227
DREAM E�ftREME Fax: (951)471-1418
NOTICE OF VIOLATION
APN: Code Enforcement Case#: Z j — I r-(Sol Complaint/Field
Subject Property: ? 39.
Owner/Occupant Name: `C4K �sWff S
Mailing Address:
An inspection of your property has revealed the following violations of the Lake Elsinore Municipal Code section(s):
i, ❑ 5.08.020 Business License required.A Business License is ❑ 8.18.020(AA) Stagnant water in swimming pool,spa or pond.
required to operate in city limits.Obtain a license or cease Treat or drain stagnant water.Drainage to public property
operation of this business.Call(951)674-3124 ext.302 for info. requires city approval.
❑' 8.16.120 Trash containers put out too early or not removed ❑ 8.36.010 Inoperable vehicle(s)or parts in public view(expired
after collection. Containers shall not be placed at curb before registration,mechanical deficiencies,etc.).Store inside a
6:00 PM the day before collection and must be removed from garage,make operable or remove from property."Non-op"
the public right-of-way(curb/parkway/street)within 12 hours of vehicles cannot be stored on driveways. Call(951)674-3124
collection.Comply IMMEDIATELY. ext.227 for information on the City's free towing program.
❑ 8.16.270 Trash collection service is mandatory for all residences ❑ 9.52.060 Graffiti.Remove graffiti from public view. Keep
and businesses.Please contact CR&R Disposal at(800)755-8112 buildings,walls and fences free of graffiti on a regular basis.
to arrange for refuse service. ❑ 12.12.020/030 No address numbers on business or residence.
❑ 8.18.020 (H,G) Broken windows,defective,deteriorated or Place address numbers on building near the front entrance so
unsightly building exteriors,walls,fences,walkways or they are visible from the street. The numbers to be 3 1/2"high
driveways. Repair deteriorated building exteriors and/or and of a contrasting color to the paint on the building or not less
repaint.Damaged fencing to be repaired or completely than 2 1/2"high if embossed, stamped or painted on contrasting
removed. plate for easy identification in emergencies.
❑ 8.18.020 (S,X) Overgrown weeds and/or trees. Cut all.weeds on ❑ 15.04.010 (114.2 Calif. Building Code). STOP WORK
property and parkway to less than 2"high. Trim trees up to 6' IMMEDIATELY! Do not continue working on this project until
off the ground,9'over any sidewalk and 12'over any street. you have obtained the required permits at City Hall.
Remove dead branches or palm fronds within 6'of the ground. p 15.38.010.(590.3(B)C.E.0 Temporary lighting(holiday or
Remove any dead trees,bushes and other vegetation. decorative lighting)left up more than 90 days.Remove
❑ 8.18.020 (V) Any property with pooled oil accumulation,oil or temporary lighting.
other hazardous material flowing onto public rights-of-way,or ❑ 17.148.140 Vehicle(s)or trailer(s)parked on lawn or dirt area.
excessive accumulations of grease,oil or other hazardous Park on paved driveway or in garage IMMEDIATELY.
material on paved or unpaved surfaces,buildings,walls or ��rr
fences,or on any public street or property. ❑ 17.196.100 Prohibited signs.Remove prohibited sign(s) 1
❑ 8.18.020 (J,K,L) Attractive nuisances,(furniture,appliances,
IMMEDIATELY.
fixtures,machinery,construction equipment or supplies,etc.) ❑ 17.196.030 Permit required fortemporary signs,banners,flags,
stored and visible from public street,alley or adjoining property. pennants and balloons.Remove from public display within 24
Remove stored items from public view. Store within an hours or obtain a permit from the Planning Department.
enclosed building or remove from the property. OTHER: 7- d f C_/4
❑ 8.18.'020(W) Lack of landscaping.Install,replace and maintain LrA� e-A.J r� �r� "� luv--S T
�fJrAia) GlB��' 0^-77G r�NcaS` Csf
in a living condition plant material to improve appearance and sa
reduce dust. JAt/cl'5rA 77 1 Att d/i7
❑ 8.18.020(Y,Z) Storage of watercraft or camper shell in any
required front yard on unapproved parking surface or inside or
rear yard.Store in rear or side yard behind six(6)foot solid
fence/wall on an operable licensed trailer/vehicle or remove
from premises.
Corrective actions to be completed by Z 2-Z�+� _or as indicated above. Failure to correct any of these violations within the time
given could result in a citation or other legal action: All costs associated with further action may be recovered through assessments or liens.
For further information or to request an extension, please contact the Code Enforcement Division.
Code Enfohersonal
cement Officer: �(.CA- Q � Date Issued: C5
Method: Delivery ❑ Posted ❑ 1't Class Mail ❑Certified Mail/No
Invoice History
4010 City of Lake Elsinore, CA
Report Sequence: Account Number
w� All Invoices
Account Number Account Name Account Status Account Class
00467 MEDCARE FARMS Active CANNABIS-CANNABIS
Invoice Invoice Due Transaction Recurring Transaction•---------Transaction History---------. Invoice Total Account
Number Date Date Date Cycle Amount Debits Credits Balance U/C Balance
IN20-0229 12/27/2019 2/28/2020 12/27/2019 351,000.00 0.00
RPAA-Reverse Payment Adjustment 6/30/2020 282,828.00 0.00
REIN-Reverse Invoice 6/30/2020 0.00 -351,000.00
RPAA-Reverse Payment Adjustment 6/30/2020 40,404.00 0.00
PMNT-Payment 7/7/2020 0.00 -282,828.00
PMNT-Payment 8/6/2020 0.00 -40,404.00
IN20-0341 6/27/2020 6/27/2020 6/30/2020 351,000.00 0.00
REIN-Reverse Invoice 6/30/2020 0.00 -351,000.00
IN21-0099 6/27/2020 6/27/2020 6/30/2020 242,424.00 0.00
CAPP-Credit Application 7/9/2020 0.00 -40,404.00
CAPP-Credit Application 7/9/2020 0.00 -40,404.00
CAPP-Credit Application 8/6/2020 0.00 -40,404.00
PMNT-Payment 10/2/2020 0.00 -40,404.00
PMNT-Payment 11/4/2020 0.00 -40,404.00
PMNT-Payment 12/2/2020 0.00 -40,404.00
IN21-0100 12/27/2019 2/29/2020 6/30/2020 242,424.00 0.00
CAPP-Credit Application 7/9/2020 0.00 -202,020.00
PMNT-Payment 9/4/2020 0.00 -40,404.00
IN21-0216 11/25/2020 12/31/2020 11/25/2020 504,241.92 163,837.92
PMNT-Payment 1/8/2021 0.00 -40,404.00
PMNT-Payment 2/18/2021 0.00 -50,000.00
PMNT-Payment 4/1/2021 0.00 -50,000.00
PMNT-Payment 5/7/2021 0.00 -50,000.00
PMNT-Payment 6/3/2021 0.00 -50,000.00
PMNT-Payment 7/13/2021 0.00 -50,000.00
PMNT-Payment 9/20/2021 0.00 -50,000.00
Account Totals: 1,691,089.92 323,232.00 -1,850,484.00 163,837.92 543090.24 706928.16
Invoice History Totals: 1,691,089.92 323,232.00 -1,850,494.00 163,837.92
12/22/2021 10:18:08 AM Page 1 of 1
Exhibit D
BUSINESS LICENSE APPLICATION
Administrative Services-Licensing
130 South Maln Street LICENSE Na.I_i f,F L LS I NOKE Lake Elsinore,CA 9253C BUSINESS DD N0:
r-- PH 951.674.3124 x 302
FAX 95',471,0052 CONTACT ID NO
t wsKw.lake-elsinore oro
BUSINESS LICENSE APPLICATION-COMMERCIAL
;Busowss Compliarce App+lta'lion must be approved or'or to the issuance of your license i
BUSINESS NAME: MEDICARE FARMS BLSINE55 PHONE: 800 466-6420
CORPORATE NAME(If applicable) BUSINESS START DATE j—
LOCATIONADDRFSS: 29395 HUNCO WAY LAKE ELSINORE ZIP: 92530
EMAIL ADORESS: GARI NAME DCAREFARMS.COM WEBSITE:
BUSINESS DESCRIPTION: CANNABIS RETAIL STORE
MAILIK ADDRESS IF DIFFERIENT THAN ABOVE
ADORES$
CITY STATE ZIP:
CORPORA-ION SOLE PROPRIFTOR PARTNERSHIP ] iHJST
NON-PROFIT CORP-LTD LIABILITY 1 OTHER
BMN ESS INFOIWATION
FEDERALTAX ID, OR EINM 83-1753931 SELLERS PERMITOlp43 00''-MLP,1
STATE CONTRACTORS LICENSE TYPE: EXP.
PLEASE ATTACH COPIES OF THE FOLLOWING IF APPLICABLE: _
L FICTITIOUS NAME STATEMENT I[A SELLERS PERMfT/RESALE NUMBER L_ HEALTH PERMIT
ABC LICENSE TOBACCO LICEN5E 7 BUREAU Of AUTO REPAIR [--j C05METOLOGY LICENSE
CAMTC LICENSE X OTHER: 8QQ MICROBLISINESS CANNABIS LICENSE
OWNER 1 NAME GARIN HESLOP OWNER '. NAME: E L P
HOME ADDRESS: HOME ADDRESS:
CITY,STATE,ZIP CfTY,STATE,ZIP
PHONE PHONE
'State Alaedated DhaWilty Ames fee(ss I IW S4,11141 he e}Fecthte 1-11-18) Under lederal and state law,curnpunce with dlsahillty cress taws s a senaus and
sio6unt respomlbdity that applies to all Califarni a budding owners and tenants with buildings open to the public.You may otItain in'ormabon abi your legal othgations
and how tc comply mi:n disapr!i!y accm laws at the fdlowng agendrs The DlvWon of State Architect atvrww n gitYLdia`n+^^+!?sm The Department tH P.efubilitation at
Wv MICIHQ,uhwnet.00r;and ITsr Ulitmia Carssmission or.Disability A fte ate,
LICM FE I SCHEDO Lf I declare under penalty otperjury that the slatem ents made in thisappl cation a re true.I acknowledge and
GENERAL- S72.90YFAR understand that the Business License Certtfiate Issued by the City of lake Elsinore is a receipt evidencing
PROFESSIONAL- SK00YEAR thatI haw paldtneCityof akeElsinore Business License Taximposedunder5ectlon5.08oftheLakeElsinore
CONTRACTORS- Ail s100,A0YEAR MuNdpal Code for tht period indicated. Issuance of the certificate does not rnti&me to carry on the
CAD $65.00 TEAR
LICENSE FEES DUE busineuwithoutcomplying win all otherCrty building and zoning ordinances and ail otlserapplicaolelaws
Lkenre fee
"State CA Sp fee S4.00 ApplicantSignaturelDate
Em s over 5
x$a.50 tallUS>-S License Approval/Date I
Units over 3 -6
Total Due
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
CANNABIS TAX PERMIT
PERART NUMBER
CD STF 095-002440 THfSPERMITRAS BEEN ISS LIED TOYOU
UNDER SECRON 34014 OF THE CALIFORNIA
REVENUE AND TAXATION CODE-PLEASE
MEDCARE FARMS 2.0 RETAIN FOR YOUR RECORDS.
29395 HUNCO WAY
LAKE ELSINORE, CA 92530-2756
L-
THIS PERMIT IS NOT TRANSFERABLE.
For general tax questions,please caH our Customer Service Center at 1-BW 400-7115(1n: 711).
For information on your rights, contact the Taxpayers' Rights Advocate Office at 1-SM-324-2798
or 1-916-324-2798.
CDTFA-442-CD(1-19)
A MESSAGE TO OUR PERMIT HOLDER
As a permittee,you have certain rights and responsibilities under the Cannabis Tax Law.To assist in yoKa
endeavor and help you understand the law,we offer these sources:
• • Our website at www-cdtfa.ca.gov
• Our toll-free Customer Service Center at 1-800-400-7115 (1 TY:711)
As a permittee, you are expected to maintain the normal books and records of a prudent business person. You
are required to maintain these books and records for no less than four years, and make them available for
inspection by a California Department of Tax and Fee Administration (CDTFA) representative when requested.
You must notify us if you are buying, selling, or discontinuing your business-, adding or dropping a partner,
officer, or member;or when you are moving- This permit is valid only for the owner specified on the permit. A
person who obtains a permit who ceases to do business, or who never commenced business, shall surrender
their permit by immediately notifying the CDTFA it writing at this address: California Department of Tax and Fee
Administration, Registration and Licensing, MIC:88, P.O. Sox 942879, Sacramento, CA 94279-0088.
If you would like to know more about your rights as a taxpayer, or if you are unable to resolve an issue with the
CDTFA, please contact the Taxpayers' Rights Advocate Office For help by calling 1-888-324-2798 or
1-916-324-2798. Their fax number is 1-916 323-3319.
As authorized by law, information provided by an applicant for a permit may be disclosed to other government
agencies.
CA[ IFORNIA DEPARTMENT OF
TAX AND FEE ADMINISTRATION
Registration and Licensing Section
�y. Bureau of Cannabis Control
(833) 768-5880
' I'd MIA
Adult-Use and Medicinal - Microbusiness License
Provisional
Distributor
Level 1 Manufacturer
Retailer
Cultivator (less than 10K aq ft)
Cultivator Type Indoor
LICENSE NO: VALID:
C12-0000206-LIC 7/19/2019
LEGAL BUSINESS NAME: EXPIRES:
MEDCARE FARMS 2.0 7/18/2020
PREMISE:
29395 HUNCO WAY, BLDG A
LAKE ELSINORE, CA 92530-2756
Ncn-Transferable Prominently display this license
as required by lUe 16 CCR§ 5039
DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
SELLER'S PERMIT
April 30, 2019 f.4
ACCOUNTNUMBER
243384064- 00001 r�
Office of Control:
MEDICARE FARMS 2.0 Riverside Office
29395 HUNCO WAY NOTICE TO PERMIT TEE
LAKE ELSINORE CA 92530-2756 You are required obey all
Federal end l Sfafo laws that
USA residers or his per you
business. This pertnif does
not allow you to do
otherwise.
IS HEREBY AUTHORIZED PURSUANT TO SALES AND USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE
PERSONAL PROPERTY AT THE ABOVE LOCATION.THIS PERMIT IS VALID ONLY AT THE ABOVE ADDRESS.
THIS PERMIT 15 VALID UNTIL REVOKED OR CANCELED AND IS NOT TRANSFERABLE.IF YOU SELL YOUR BUSINESS OR DROP OUT
OF A PARTNERSHIP,NOT'FY US OR YOU COULD BE RESPONSIBLE FOR SALES AND USE TAXES OWED BY THE NEW OPERATOR
OF THE BUSINESS.
Not valid of any other address
For general tax questions,please call our Customer Service Center at 1400.4011-7115(TfY:711).
For information on your rights,contact the Taxpayers'Rights Advocate Office at 1-888-324-2798 or 1-916-324-2798.
GOTFA-442-R REV 10(518;
A MESSAGE TO OUR NEW PERMIT HOLDER
As a seller,you have rights and responsibilities under the Sales and Use Tax Law. In order to assist you In your endeavor
and to better understand the law,we offer the following sources of help:
Visiting our website at www.cdtfa.ca gov
Visiting an office
• Attending a Basic Sales and Use Tax Law Mass offered at one of our offices
• Sending your questions in writing to any one of our offices
Calling our toll-free Customer Service Center at 1-800-400-7115(TTY:711)
As a seller,you have the right to issue resale certificates for merchandise that you intend to resell.You also have the
responsibility of not misusing resale certificates.While the sales tax Is imposed upon the retailer,
• You have the right to seek reimbursement of the tax from your customer
• You are responsible for filing and paying your sales and use tax returns timely
• You have the night to be treated in a fair and equitable manner by the employees of the California Department of Tax and Fee
Administre6on(CDTFA)
• You are responsible for following the regulations set forth by the CDTFA
As a seller,you are expected to maintain the normal books and records of a prudent businessperson. You are required to maintain these booKS
and records for no less than four years, and make them available for Inspection by a CDTFA representative when requested. You are also required
to know and charge trie correct sales or use tax rate,including any local and district taxes.The tax rate applicable to your sales or use may not
necessarily correspond to the tax rate of your business address displayed on Inis permit.You are also expected to notify us if you are buying,
selling,adding a location,or discdnLinuing your business, adding or dropping a partner officer,or member,or when you are moving ary Or all of
your business locations. If it becomes necessary to surrender this permit,you should only do so by mailing it to a CDTFA office,or giving it to a
CDTFA representative.
If you would like to know more about your tights as a taxpayer,or if you are unable to resolve an issue with CDTFA, please contact the Taxpayers'
Rights Advocate Office for help by calling tl:4-free, 1-888-324-2798 or 1-916-324-2798. Their fax number is 1-916-323-3319.
Please post this permit at the address for which it was issued and at a location visible to your customers.
California Department of Tax and Fee Administration
Business Tax and Fee Division
� Y
1 �
1
01
Effective Date: Cecem ber 20tt 019
Western Surety Company ;
,
;
,
LICENSE AND PERMIT BOND
KNOW ALL PERSONS BY THESE PRESENTS: Bond No. 69 911391
That we, MEDCARE FAWMS 2.D
of LFKELSIA'ORE _, State of California as Principal,
and WESTERN SURETY COMPANY, a corporation duly licensed to do surety business in the State of
California as Surety, are held and firmly bound unto the
City of Lake Elsinore State of "apt i fornid as Obligee,in the penal
sum of Five Thousare and 00/100._ DOLLARS(0 002.00 ),
lawful money of the United States, to be paid to the Obligee. for which payment well and truly to be made.
we bind ourselves and our legal representatives, firmly by these presents.
THE CONDITION OF THE ABOVE OBLIGATION IS SUCH, That whereas, the Principal has been
licensed Vendor
--- -- — — — by the Obligee.
NOW THEREFORE, if the Principal shall faithfully perform the duties and in all things comply
with the laws and ordinances, including all amendments thereto, pertaining to the license or permit
applied for, then this obligation to be void, otherwise to remain in full force and effect until
DeceT.ber 20th 2020 , unless renewed by Continuation Certificate.
This bond may be terminated at any time by the Surety upon sending notice in writing. by First Class
L'.S. Mail, to the Obligee and to the Principal at the address last known to the Surety, and at the expiration
of thirty-(use (35)-days from the mailing of said notice, this bond shall ipso facto terminate and the Surety
shalf theiteupon be relieved from any liability for any acts or omissions of the Principal subsequent to said
dai e;. RQgaydless of.the number of years this bond shall continue in force, the number of claims made
against phis bond, and the number of premiums which shall be payable or paid, the Surety's total limit of
liab,z7ify shall not be cuinulative from year to year or period to period, and in no event shall the Surety's total
liebi ity:l>r-aU claims exceed the amount set forth above. Any revision of the bond amount shall not be
cumulative.
,
Dated this day of December 2019
3
MEi ARE FARMS 2.
Principal ;
;
Principal
,
WESTE StjRET • COMPANY
BY-- -
Paul T Br flat. Vice President
Finn >2-11-201s
1 ACKNOWLEDGMENT OF SURETY
STATE OF SOUTH DAKOTA 1 ss (Corporate Officer)
COUNTY OF MINNEHAHA li
On this 20th day of December 2019 before me,the undersigned officer,
personally appeared Paul T. Bruf'_at _ who acknowledged himself to be the aforesaid
officer of WESTERN SURETY COMPANY,a corporation, and that he as such officer, being authorized so to do,executed
the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as such
officer.
IN WITNESS WHEREOF, I have hereunto set my hand and official seal.
44444titi4tititi44ti44ti44�s4ti444�
i L. Bauder
+ ^ NOTARY PUBLIC ^ J
i EAL SOUTH DAKOTA SEAL i Notary Public—South Dakota
♦444 4 44 444 4 44 4444 44 4 44tih+
My Commission Expires January 29, ,2022 ACKNOWLEDGMENT OF PRINCIPAL
STATE OF i ss (Individual or Partners)
COUNTY OF
On this —_ — day of ,before me personally appeared
known to me to be the individual _ described in and who executed the foregoing instrument and acknowledged to me
that —he— executed the same.
My commission expires
Notary Public
ACKNOWLEDGMENT OF PRINCIPAL
STATE OF _ (Corporate Officer)
COUNTY OF (53
On this A__. day of _._ __ , before me personally appeared
who acknowledged himself/herself to be the
of a corporation, and that he/she as
such officer being authorized so to do,executed the foregoing instrument for the purposes therein contained by signing
the name of the corporation by himself/herself as such officer.
My commission expires
Notary Public
1`
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CAI IFORNIA DEPARTMENT OI IAX AND FEE ADMINISTRATION
CANNABIS TAX PERMIT
-e
PERMIT NUMBER
CD STF 095-002440 I THIS PERM T HAS BEEN/SSUEDTOYOU
UNDER SECTION 34014 OF THE CAL!FORMA
R£VENUEAND FAXA NON COO£.PL'EASE
MEDCARE FARMS 2.0 RETAIN FOR YOUR RECORDS.
29395 HUNCO WAY
LACE E-SINORE, CA 92530-2756
L
THIS PERMIT IS NOT TRANSFERABLE.
For general tax questions, please caH our Customer Service Center at 1-800-400-7115 (rfY:711)_
For information on your ruts, contact the Taxpayers' Rights Advocate OtSce at 1-SM-3244796
or 1-916-324-2798.
CUTFA-442-CD(1-18)
A MESSAGE TO OUR PERMIT HOLDER
As a permittee, you have certain rights and responsibilities under the Cannabis Tax Law. To assist in your
endeavor and help you understand the law,we offer these sources:
• Our website at www_cdtfa.ca.gov
• Our toll-free Customer Service Center at 1-800-400-7115 (TTY.711)
As a permittee, you are expected to maintain the normal books and records of a prudent business person. You
are required to maintain these books and records for no less than four years, and make them available for
inspection by a California Department of Tax and Fee Administration (CDTFA) representative when requested.
You must notify us if you are buying, selling, or discontinuing your business; adding or dropping a partner,
officer, or member;or when you are moving. This permit is valid only for the owner specified on the permit. A
person who obtains a permit who ceases to do business, or who never commenced business, shall surrender
their permit by immediately notifying the CDTFA in writing at this address: California Department of Tax and Fee
Administration, Registration and Licensing, MIC:88, P.O. Box 942879, Sacramento, CA 94279-0088.
If you wouid like to know more about your rights as a taxpayer, or if you are unable to resolve an issue with the
CDTFA, please contact the Taxpayers' Rights Advocate Office for help by calling 1-888-324-2798 or
1-916-324-2798. Their fax number is 1-916-323-3319.
As authorized by law, information provided by an applicant for a permit may be disclosed to other government
agencies.
CALIFORNIA DEPARTMENT OF
TAX AND FEE ADMINISI RATION
Registration and Licensing Section
At!'ORD CERTIFICATE OF LIABILITY INSURANCE DATEManoffy"
05/06/2019
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORVED
REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER.
IMPORTANT: If the artificats holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy,certain policies may require an endorsement. A statement on this arttficate does not conifer rights to the
cef"cate holder In lieu of such endomemengs).
PRODUCER ROBBrRT GROTE
JASON W01COTT INSURANCE SERVICES 949-916-0360 949-916-0370
23120 ALICIA PARKWAY L ROBERTGWOLCOTT INS.COX
SUITS 231
INa B AFFORDING CIIVHULI# NAIL•
)MISSION VI EJO CA 92691 INeURER A:HUDSON INSURANCE COMPANY
INSURED L"URER B
NGU $OLDINGS LLC AND NGU DISTRIBUTION LLC; INSURERc:
KEDCARE FARMS , INC. & NBDCARE M"BRPRISSS INC INSURER0.
ViBiIRFR E
INSL1RtR F_
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TC CERTI-Y TIiAT THE POLICIES OF INSURANCE LISTED BELOW HAVF BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERM
INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAUMS.
IL TYPE OF INSURANCE NtInaER wLlcr uv Lune
COMMERCIAL GENERAL UABFUTY c HHD1DD46652 05/03/3019 OS/03/2030 EACH OCCURRENCE $ 1,000,000
CLAIMS-&LADE 7 OCCUR SEs Em oocuwrer S 100,000
MED EXP t me PVa 0 s 5,000
A Y Y PERSONAL&ADV IWURY s 1,000,000
GENL AGGREG^ATE LIMTT APPLIES DER GENERAL AGGREGATE S 2,000,000
POLICY i— `�0. C LOC PROOUGT3-COMPIOP AGO S
Ol HER f
ALITOYOaiE UAZIUTY COMBINED SINGLE UNIT f
M.r�n
ANY AUTO I 8OD1.Y INJURY(Pr Person) f
ALL OWNED SCHEDU.ED BODILY INJURY(Pe amd.1) S
AUTOS AUTOS —
NON-OWNED PRCPERTY DAMAGE S
HIREDAJTOS ALIMS
S
UMBRELLA UTAA OCCUR EACH OCCURRENCE S
QC L1Ag CJVMS4AAOE AGGREGATE S
OE; RETENTION S I $
WORKERS CCUPENSAT10N PEA rUTF ER U ITµ
AND EI/PLOYE R3'UASIUTY Y I N
IANY P40PWET'OWflARTNEw*,ECJTr E E.L EACH ACCIDENT S
OF FIC&UMEMBER EXCLUDED? NIA
JEMd*wy In NN) E.L.DISEASE-EA EMPLOYEE S
0yW desmbe under
DES"O"MION DF OPERATIONS bNDr EL DISEASE-POLICY LIMIT S
DESCRIPTION OF OPERATIONIS I LOCATIONS I VEKCLES (ACORD 101,A4dMwai R—rla ad,Wur,rip b.Ktached Y n»n aPr 0 MWIftd)
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCR)BED POLICIES BE CANCELLED BEFORE
THE EUm4UTION DATE THEREOF. NOTICE MALL BE DELIVERED IN
ACCORDANCE MATH THE POLICY PROVIS1093.
AUYyp(t1i o REPRESENTATIVE
/P,�6�t �E
0 1999-2014 ACORD C RATION. All rights reseed.
ACORD 25(2014411) The ACORD name and bgo are registered marks of ACORD
uj
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all$
LLJ (L LL)
2 -Uj- x <
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33
2, kq_
California Ali-Aul-pose. Geriilffcete of Acknowledgment
A notary pubic or other otHocr compleWV Iris cerWcate tretities orry tow bey or a..tt4i kkW who udgrwd the
document to WWrh Ihk mrWlGate is attadiod,and rwl du buttiukmea,accuracy.or—Sdhy or r►at doomnezL
State of California
County of Mveryide S.S.
O� ® l3 /lt�, before me, C-1 � 7t"40G .Notary Public
Mw"of HOOV PgWG?its
persor Ay appeared �A7 w,-esz-- ^J 4 T ire
. wawa d sty«r�
NwM d t71'
who proved to me on the basis of satisfactory evidence to be the person(tS a name(
IqRre the WMIn Instnment and acknowledged to at ey executed
the same In h er Ir authorized capadty(l� ,and that by h=-eIr s na re on the
6Tst ument the on�, or the entity upon behalf of which the person(p acted. executed the
Instrment.
I certify t)txW PENALTY OF PERJURY under the laws
of the State of Callfo "a that the foregoing paragraph is _ ROCHEI MIOG
COIK true and corTKI. b AUMU Gf
WITNESS y hand and o(Odal aeaL e►o.aEs w t�
seal
ii)x�d Nofan
Athmvh 6- tronnation in t B In is not u>•p mnPd by law,k could prtwww fraudAmM amoral and ranks-u eni o/
MVr fro rvn(to an iwtwtuthwfmd obuxnant and mayp am--%d Ib'porsww rW6*V on ON ittachd docunsru
Desgipllon of Attached Document
The p►ecedi g Co4fcate of AckromAedyma t M aduchad b v Method of Vtder.t)fcaYon
doauffwtl tllOMOr am purpose of Prund to me so to bmb d-O&KI V-i*—
/(]"I) tdrrdeCdoe Cl OVA*U66M*84
oortlak*V pages. WW dated H*tKr arrit b al"W bt.ol.ryomw we
The elww1s)capacity or authority Ware as: P'oa 8 EF*y I—
❑ t++�tdwl(r) rtots.y cer,rs�
t7 Aftw tMad
❑ Capone OOCOO)
Tom. ❑Add West alww ❑ 8Iv r m)Thrnrrl**)
❑
❑ P.%M-
❑ Tina*Z)
❑ OMer.
represarttlrg:
wr�(si e�►aeA.y 6.�.0 sr..n IM�r�w+y
O 2tl04Xt 13 hicMay l art+try Gdtter-All jrs Raurved Tait cat F�+dloso COPW d IAia lortn Mont our mkb sila a raw.lt+MJmMssen-esaw+
to '€aa
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CITY OF Firs Buelfle`a L.icam Revises
LAKE C�,LSI rJO E 130 S.Main St. . Lake Enemas,Cadfomia 925W
DREAM EXTREME (951)674-3124 a Fax(951)471-1491
i
Maass FIN.tTM a►Ow*ine as Ira
Business Name MEDCARE FARMS 2.0
Fin Sprinklers Installed ®Yes ❑ No
Check all anallcable Items(modificatio Anstallation):
®No modifications or Installations have been performed
❑Battery systems ❑Compressed gas ❑Fire doorWwalls ❑Flammable and
combustible liquid
❑ Han rdous materials ❑Industrial oven ❑LP gas Installation or ❑Spray room,dip tank
modification or booth
❑Shndpips system: ❑Temporary membrane ❑Wood products ❑Upholstered Furniture
Installebon,modillcatlon structure,tent or canopy
or removal
Check all applicable operational permit Kwa (CFC Section jq
❑ No modifications or Installations have been performed
❑Cellulose nitrate film ❑Combustible dust- ❑Compressed Vaasa [J Coveted and open
producing oponKlons mail bulldkV%
❑Cryogenic hulls ❑Cutting and welding ❑Dry cleaning []Explostves
❑ Fletnmeble and ❑Floor thilaNng ®Fruit and crop ❑Fumigation and
combuetlbie squids ripening insecticidal fogging
❑Hazardous materials ❑High-pled storage ❑Not work operation ❑Industrial ovens
❑ LP-gas ❑Magnesium [:)Open flames and ❑Open dames anti
torches candles
❑Organic coatings ❑Places of assembty ❑Pyrotechnic spatial ❑Pyrox"n plastics
affects mi terial
❑RefrigeraWn ❑Repair garages end ❑Spraying or dipping ❑Storage of scrap Was
equipment motor fueWlspensing and tin byproducts
facilities
qc��fl 12J30/2019
Applicant's Soilature Date
coo
Title
AIR COMMERCIAL REAL ESTATE ASSOCIATION
STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE — NET
(DO NOT USE THIS FORM FOR MUM-TENANT BUILDINGS)
1. Bask Imvlsbas('Bask Prorfsfons"T
1.1 Pwbm- T1ie Lew(Yasse7,debd lar refrwq purposes" Mardi 29.201 B
is^e*by wb bowasn Pssaderra kids t Park.LLC
(1-9009)
end MKkAM E,r�.r+.csM.a C�lfcxr+la cdrDarativt
rLaaw'.
(mllaatyNr de TUB..,'or VO4dusay a•Port )
12 Prrwls": That mfWn real p Waty.nck+dbf aI ngruvwnsrrs Mtsbi or to be proOdad by Luaw under tw Mmu of 4is Lew,
and cmrr"frown ea _2M Hump Way_Lske f3alnore CA
boded In re Courty of Rhtir dde .Stab d _C-md ID$
ww Pnwldy Aeentt ss(dsaab 4Wy M rteluro d fle proparry and,f appiraEie,tle'PraJect•,If tM plopaty is' erNn a ProlecQ
Ii k*m A.pppnp lrrlably 28,W Sf Jriduatrld wershouse
{Trewrea7. (Sea aro Parapnph I)
1.3 Tarns:__]Q_ __dean and p merle COv%hd Torn')eonon Khrp _mvAdkT Gm
rC4=w*ncwrmu Dabs and ardnp 10 vsrrs afEr 1!r mmwlsrrin dale MgMion Dols'). (life steo Paragraph 3)
to EWV Possession: N to Pn r4m am avibla Lou" may Mrs ror►wa poMesaion d tha Prrrises carrrendnp
-q_► e add-A,- rEarty Posasosaan ab-. (See oho Progwopm 3.2 and 3 31
1.5 Bar Kent f 42972-00 par mull rYsae Nlol'1,payarta rn fe 181 day of
sect manor wmwKkV upon W"0*bWdrg popsaafbn bf pr@fflbW
.(See also P-200 A 4)
❑r fro bra f•dladtad,than proMaiorrs in fb Law br fe Bass Rote ha a*mkml See Pwapapn
is tease Rest and O11er raves PMd Upon Er colon:
(a) life Rare f__jLq72.0Q_ . for fe paned nflt in dM of rani
(b) SecrwRy Depait:f5Q_ODO.00 (3sonBr tbpm n. (See am Paragraph 5)
(c) Assoc"un Fla f for fle parod
A OBrsr f 4,912.67 for E>fl�TrfoisNet Charon _
(s) Tebri Due Upon laocubm of vela Loom:f 47.801.B7
1.7 Awmw L1so:
4drnA04 refired pm!Q% a sa Dom!lsd Uy ihs Cfv of Lake Ehklofs (moo sYo Par>�>�1s]
1.B I Party. Lessor Y the-WAmArry Porte news seer fto MAW hweri (sea dew Paragraph B)
14 tbai Estrls Ilok&M(Son are F-WW h$5 arrd 25)
(s)Rspreoeq *M:The baowrq reel rase b.okaa MW'Barkers-)wd W*01 a n" ahipa a"in fda ammckO (dstt!
eppicabw bar..r
❑ nwrn«tb Lessor-0-Mdy CLsasols ftwhsr"r.
❑_ _ _ ...�L.. 0*d�.raa/y(t.eeee•s Brahsrr,of
❑ rapeNtt both Losm3r aW Lmm(-Dial AWW).
(D)PeymoM to Brokers:Upon oawAiun arc dof vwy d fYs Les"by bear Parlos,Lssom shad pay m ere Broken to brotarape
Ile aprsed b h s saparala er1 asn aprsalltra(a f flan e ro loch aprsacnerll fr aan of` or- ,A of fe loW Bs"
Rat)gar fe lioraropo"ryi rendered by Ow 9mkwe-
1.10 Guarwtlor.The dtipetloru d de Lseses under fis Lsw m-iD bo fuwwrltod by Gran H@Ikm
rouwsnror} (Sao alto Paragraph 37)
1.11 Af Khff eras. ANocled Moro an aw bfewsp,sa of Mich cvr>darte s pod of fta Las":
❑ an Addardrm mnusbrp of Parowuph2 0-trph
❑ a Pbt Plan drpldrw de Prerriem;
❑ e arrest sot of fe RIAs srd ROWAabna,
❑ s Work L~
❑ a w=W 0mcbmwe nddaraksn Is ridded;
n c*w(pdyr
2 thanr.eo.
I.1 LvMV4;. lessor Mt a"lssaas to Lesion,arc Lessoe hersby Mesas tom Lmmm.tto Prernisea sn ee leak!.at be rota,srd
upon of d the ieme,oaverrerrd and mnd>tiaru so far h M Leaee. WhTs fe apprmBnaas soar•brtaps of the P+emissa stay Nm bsen vsea n
PAGe 1 OF IT
IltilhL3
=W -AIR COMMERCIAL REAL!STATE ASSOCLAT101f FORM SlWA D-W 4E
! �{BURzE-A;Ua��
C'ANNa' 1$, Bureau of Cannabis Cortr6
'C.OrIROL (833) 768-5880
Adult-Use and Medicinal - Microbusiness License
Provisional
Distributor
Level 1 Manufacturer
Retailer
Cultivator (less than 10K sq ft)
Cultivator Type Indoor
LICENSE NO: VALID:
C12-0000206-LIC 7/19/2019
LEGAL BUSINESS NAME: EXPIRES:
MEDCARE FARMS 2.0 7/18/2020
PREMISE: w1t9a
29395 HUNCO WAY, BLDG A ,
LAKE ELSINORE, CA 92530-2756
Non-Transferable Prominently display this license
as required by Title 16 CCR§ 5039
DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
SELLER'S PERMIT
April 30, 2019
ACCOUNT NUMBER l.`'r�i• 4`
Y is
243384064 -00001 .�,�,'c•1+-�,�✓3�.
Office of Control:
MEDCARE FARMS 2.0 Riverside office
29395 HUNCO WAY NoriCF FOPERMirTEE.
LAKE ELSINORE CA 92530-2756 You are required to obey all
Feceral and State laws that
USA regulate or control your
L business. This permit does
not allow you to do
otherwise
IS HEREBY AUTHORIZED PURSUANT TO SALES Al USE TAX LAW TO ENGAGE IN THE BUSINESS OF SELLING TANGIBLE
PERSONAL PROPERTY AT THE ABOVE LOCATION.THIS PERMIT IS VA:,ID ONl Y AT THE ABOVE ADDRESS.
THIS PERMIT IS VALID UNTIL REVOKED OR CANCELED AND IS NOT TRANSFERABLE.IF YOU SELL YOUR BUSINESS OR DROP OUT
OF A PARTNERSHIP,NOTIFY US OR YOU COULD BE RESPDNS BLE FOR SALES AND 1.5E TAXES OWED BY THE NEW OPERATOR
OF THE BLSINll
Not valid at any other address
For general tax questions,please call our Customer Service Center at 1-800-400.7115(TTY:711).
For Information on your rights,contact the Taxpayers'Rights Advocate Office at 1-888-324-2798 or 1-916-324-2798.
COTFA442-R RFV,18(S18}
A MESSAGE TO OUR NEW PERMIT HOLDER
As a seller, you have rights and responsibilities under the Sales and Use Tax Law. In order to assist you in your endeavor
and to better understand the law,we offer the following sources of help:
• Visiting our website at www.cdtfa.ca.gov
• Visiting an office
• Attending a Basic Sales and Use Tax Law class offered at one of our offices
• Sending your questions in writing to any one of our offices
• Calling our toll-free Customer Service Center at 1-800-400-71 15 CFTY:711)
As a seller,you have the right to issue resale certificates for merchandise that you intend to resell.You also have the
responsibility of not misusing resale certificates.While the sales tax is imposed upon the retailer,
You have the right to seek reimbursemert of the tax from your cistomer
• You are responsible for filing and paying your sales and use tax returns timely
• You have the right to be treated in a fair and equitable manner by the employees of the California Department of Tax anc Fee
Administration(CDTFA)
• You are responsible for following the regulations set forth by the COTFA
As a seller,you are expected to maintain the normal books and records of a prudent businessperson.You are required to maintain these books
and records for no less than four years,and make them available for Inspection by a CDTFA representai rve when requested.You are also required
to know and charge the correct sales or use tax rate,including any local and district taxes.The tax rate applicable to your sales or use may not
necessarily correspond to the tax rate of your business address displayed on this permit.You are also expected to notify us if you are buying,
sailing,adding a location,or discontinuing your business,adding or dropping a partner,officer.or member,or when you a-e moving any or all of
your busiress locations- If it becomes necessary to surrender this permit,you should only do so by mailing it to a CDTFA office,or giving It to a
CDTFA representative.
If you would like to know more about your rights as a taxpayer,or if you are unable to resolve an issue with CDTFA,please contact the Taxpayers
Rights Advocate Office for help by calling toll-°ree. 1-888-324-2798 or 1-916-324-2798.Their fax number Is 1-916-323-3319
Please post this permit at the address for which it was issued and at a location visible to your customers.
Cal;fomia Deportment of Tax and Fee Administration.
Business Tax and Fee Division
MNON-CONSTRUCTION CERTIFICATE OF OCCUPANCY
L f�E LS I NO P E For use with'Cornmerclal/Retail/Indu axns strial'business locatl within the trig limits
"ectioa/Process Fie$731110 due rhar Planning Approval
$33.000ccupmxy Permit Required from SWIding Division
i
This form must be completed by the Business Owner or Representative and approved by Planning,Building
and Fire divisions prior to the issuance of your business license.
Business Name MEDCARE FARMS 2.0 _ Phone Number (800) 466-6420_ -Business Address 29M HUW*WAY.LAKE ELSINORE.CA 925M SU ite/Unit No.: A - - -Sq Footage:
Business Omw KELLY HESLOP _ Phone Number_ (951)961-7653
TM of Business CANNABIS RETAIL — --- Days&Hours of Operation M-SU 7:00AM-9:00PM —
Property Owner Name PASADENA INDUSTRIAL PARK LLC Pie Number (714)520-1134
Property Owner Address 4501 E LA PALMA AVE SUITE 240 City,Ste.Zlp ANAHEIM,CA 92607
7.
J&ia fete description
CANNABIS RETAIL STORE
Xi New Business j� Ownership Change C� Relocation { j Other
PLANNING DIVISION
Please mad and submit documents as requirnd.
®Lane yrNm eat-If you are not the praperry owner,provide a cc"of ywar lease a9reemeit Please be advised Het the business owner should also
be the kale holder.
f 4 Floor Wait-Show proposed laW of business,in&Aing area devoid to af<icm u1es,starve manvfadwing,seat4 rest roosts and other uses
Fig PUn-Planner will pmv4e plot plan it"Id submittaL
A11 new signs and du nges of signs require a separate permit-
FIRE DIVISION
J Completed Fin:5errices dude Ilst You are requhed to have a Knoz BaL
BUILDING DIVISION
Does business involve conversion of ndsorsg bolding to new use? N Yes ❑No
Do business operations irw0w use or stare of hanrdous or tok materials? [ Yes ®No
Does busksess invafve any outstde storage,work outside the bonding or off-site storage? J Yes ®No
All charges or additions to eiKtrial,plumbing medtankal,or strudural elements require a building permit This inchides partitions over Yilr h tw*t
and Diann doorways or openings.Two sets of plants shall be wbmitt ed to the Sul k11%Divtsion and appropnate permits a xied prior to arty work being
dorse-
Prior to ocalpying a building or unit an Occupngr Inspection a mWired from tfhe Binding Div1slm. An inspection fee must be paid along with the
w mitt of this form.Someone must be on premises a1 the tine of kWertion.
Affidavft
I hereby certify that I have read and understood tea and that furnished is accent tvtrueand wld
Applkant Signature/Date -- �?,13o r
0 / 19
OFFICE USE ONLY
APN No. Zone i ' Building Approval Date
Planning Approval /� — Date I� 7� !1 C Fire Approval Date
Comments: _� l i r /~-� Engineering Approval Date
-- OCCUPANCY PERMIT REQUIRED
CUP Rpylred No 1IIis Permit 0
Andrew Zavala
From: Ronnie Morales
Sent: Monday, December 30, 2019 4:24 PM
To: Joanne Jackson;Andrew Zavala; Scott Burns; Dale Heglund; David Burdick
Cc: Ronnie Morales
Subject: 29395 Hunco Way - Medcare Farms - 19-02725
On December 30, 2019, Medcare Farms has been granted fire clearance.
Western Surety Company
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS:
That WESTERN SURETY COMPANY, a corporation organized and existing under the laws of the State of South Dakota, and
authorized and licensed to do business in the States of Alabama, AlasKa, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho Illinois. Indiana, Iowa, Kansas. Kentucky, Louisiana, Maine,
Maryland, Massachusetts, Michigan. Minnesota, Mississippi. Missoun Montana, Nebraska, Nevada, New Hampshire. New Jersey,
New Mexico New YorK, North Carolina. North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina
South Dakota, Tennessee, Texas, Utah Vermont, Virginia, 'Washington, West Virginia, Wisconsin, Wyoming, anc the United
States of America, does hereby make,constitute and appoint
_ =au1 T. Biruflat of Sioux_ Fa115
State of _ _gnurh DAknra _ its regularly elected Vi-e Prps-dprit
as Atorney-in-Fact. with full power and authority hereby conferred upon, him to sign, execute, acknowledge and deliver for and on
its behalf as Surety and as its act and deed,the following bond
One Vendor CitV of Lake Elsinore
bond with bond number 64911391
fcr !ECCARE FAayS 2.0
as Principal in the penalty amount not to exceed $ 5,000.30
Western Surety Company further cerbfies that the following is a true and exact copy of Section 7 of the by-laws of Western Surety Company
July adopted and now in force,to-wit
Section 7. All bonds, policies, undertakings, Powers of Attorney, or other obligations of the corporation shall be executed in the corporate
name of the Company by the President. Secretary, any Assistant Secretary, Treasurer or any Vice President, or by such other officers as the
Board of Directors may authorize. The President, any Vice President, Secretary, any Assistant Secretary, or the Treasurer may appoint
Attorneys-in-Fact or agents who shall have authority to issue bonds, policies or undertakings in the name of the Company, The corporate seal is
not necessary for the validity of any bonds,policies undertakings.Powers of Attorney or other obligations of the corporation. The signature of ay
such officer and the corporate seal may De printed by facsimile.
In Witness Whereof, the said WESTERN SURETY COMPANY has caused these presents to be executed by its
with the corporate seal affixed this -0 -. day of December
'0 9
ATTEST WESTE N U R E T COMPANY
By
�.�
L.Nelson,Assistant Secretary Paul T ruflat.Vice Presiden!
STATE OF SOUTH DAKOTA '
,• '
COUNTY OF MINNEHAHA } ss
On this ZUta day of December —,4__, before me, a Notary Public, personally appeared
Paul T. 3rufiat and L. Nelson
who, being by me duly swom, acknowledged that they signed the above Power of Attomey as - Vice President
and Assistant Secretary, respectively, of the said WESTERN SURETY COMPANY, and acknowledged said instrument to be the
voluntary act and deed of said Corporation.
}►►ti�titi•.r�ti�r��rtitititi��ti�..}
r J. MOHR
/ EAL NOTARY PUBLIC SE L �+, B'1UiJ _
.r SOUTH DAKOTA r — - Notary Public
i
} My Camm_ssion Expires ...:ne , 202_ ry
To validate bond authenticity,go to www-.cnasLrety.cnrn >Owner/Obligee Services>Validate Bond Coverage.
Form F157fr1-2016
Ac Rd CERTIFICATE OF LIABILITY INSURANCE DATE
2126r o19
TFYs CERTIFICATE Ib ISSUED AS A MATT" OF INFORMATION ONLY AND CONFERS NO RIGMS UPON THE cEwnncATE HOLDER. Ttms
CEFITIFICATE DOES NOT AFFIRMATTVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BaOW. TIPS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSLANG INSURER(S), AUTHDRiZED
REFR£SENTATWE OR PRODUCER.AND THE CERTIFICATE HOLDER.
IMPORTANT: if the certf4fcstt holder is an ADDITIONAL INSURED.the pm4cy(iss) must bs andorso& H SUBROGATION IS WANED, svb*i to
GM Mans and conditlorrs of the policy,certain polkin may rerpArs an andamarnsmt.A suurnsnt on this certificsta does not confer rights to the
osrtifmate hdder in lieu Of such endorse s
pt9Q1Wt CONTACTAUslen Dilfw d rlvr
RAW-
Austen Drfiendeder �s+st951.TT61500 _ 'rPiAc,r,k051-rmisoT
Tiooiel
StateFarm 17940 van Buren Blvd. ss,Austenddlendertef W;ESGgsaoetarm.carn
Riverside. CA 92508 nstr"W)AIFORDI rt3 Co+EaAoa NAIC r
_M9M!r A StA*Farm oAAuai/WomWke Insurance Como+rty u178
DOILVISO MedCare Farms 2.0 erar"a.
29395 Hunco Way vieur w C.
Lake Elsinore, CA 92530 0;
«nstoe E
r
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED 6ELCiti+V HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED. NCITINITI.STANDING ANY REOUIR¢tENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCL*AFNT MATH RESPECT TO LWYCH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUMCT TO ALL THE TERMS
EXCLUSIONS AND COrdXT1oM5 OF SUCH POLICIES LIMITS SHOWN WAY HAVE BEEN REDUCED BY PAD CLAMS.
rqR L tin TYfa Cr aral/HANCa — A k--- - react wursc�e LAIroutr En POucr a" 5
CwrFWCML GEMIAAL LIAAWLr T EACH OCCA* *w--k !
WAVCC TO REWrU
C LNtS AWN- OCC;rw MEAMSFS EA rcy+e.rrl
UXDEXPtAn.Oak:.Krt I
PERSONAL►AGN IkAIiY f
G!NL AGGREGATL Uuar ArwLlte PER GEW-PALAGGAEGATE f
vRo
'- ICY _ _ xtr LOC i PRDOl1CTS•Cdf`APAGG j
or,.cre f
A AirronoenA Uraslrr 7SO640-16134 12126=19 OV2V"111 _,rr.1r�D L f
I ANY AU TO MDa,Y OWRT t.P. 1.wJ Cu
x ALL OWKD x6CPVDLt ED goat Y ruAr:P- t.CW coo
wAt O Atl t tl5 X �-O%%I%k rx�rOPYE Rojo m 1 1.Ctrs 7i>tt
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_LaSAILLA L1Aa QL; U" FALN DG:t4ZRENCE ,
txna L Aa AGCREGATL f
'PED - it TE XwIN IS
rroreRCRS cw►ENSArlow
H /F
AID EMPLO"NT UARCM Yr_w
A•;YDft.;P ,RORPAA7NEtEXr-1Q F EL EAC-4ACCmXV? 1
�C1 P1CLAVCT-0Fft E><C,lEf?I _I MrA FL DGEASE-EA run ov",I
�� _.
!;"irTbQ.or nA a F t rkµ.�u-POL f Y L as I 1
OEaCMFTnow OF O►3twnOra r LOC ArIONa I Ytaect.I.s(ACOND Mt ArkSrOMW RoftwU Wwftft,M w be Iasosw a tson W"r e*+1W
CERTIFICATE HOLDER CANCELLATION
City of Lake Elsinore S►t MLD ANY OF THE ABOVE DEIICRNLED POLICMS BE CANCELLtD BE1+oltf
130 South Main St. THE EXPWAT'to.+ DATE THEREOF, NOTICE INILL BE DELIV W IN
Lake elslnors,CA 92530 ACCORDANCE VATH THE POLICY PROVISIONS.
Mlr►gNVZD ANT ATTtE/,
7
iSM201 CORD CORPO TION.All rights reserved.
ACORD 25 i201401) Ths ACORD name and logo are reylalered rks o CORD t 1AaG 132849.9 02-04-201•1
fie man"sk g of Me prurnlses for Ptaposes of COMPA son,tle Bars Rrat shwa swan a NOT bad to masarO Fdota to and to not NA"d to mausmI
ah0ukf are scud stm be delemefed to be dffrel NOW Lases Is advised to mtfythe acbul&In Polar to exectRtag Nls Lease
2.2 CondlgM. Lessor oral delver Ina Pre roses to Lassa bloom dears had Iree of debrb on the Conmencament Dre or the Eary
I'mmeon CNs.*tIkhevs Mat Doan("Start Data-), and, to lore am he m9ired service contracts described in Pare¢spn 7.1(b)below arm
obtmrted by Lessee surd In~with*t 7rity drys fosovArq the Start Dore,wa rams that the, 1 11r4 ebcUmud,pkxnt*V,ere sptitler.lGharv,hm",
Mala'b Q and we mndU—V sysiona l N/AC-).to.drtp door. a,xrp purpm,a eery,and aO gear wan @wTwlm in lire Prarreees,otrw man loose
constructed by Lessee.Nat be In good opersi'10 cotdem on said data.Ihsl fM sbuctiNd sla nmI or the rod,bmarng nab and foundation of arty
b uti"on as I'MrMSna(Ihe'Bu l ldUV")stag be from of rnsteria(dekCs.and Mi t to Prerrbm do rot mntsn haanfous levels of any mod or hod
oe—d as beck under appkWe unto at teased ten It a narrcwnPiime wah said%many eyes as of M Start Due.or M one of Poch syuann or
tuts srhOW malhmvyon or ter warin Ore appoprrtss mosey period,Lessor ahaa,as Lessor's aces obligation wlh respect to sUdt macaw.oao pt
a udteWve Wuvklad n fats Lease.Ww"y tiler noels of meslan mosce Rom Lessee wM rarth vatfh spectinc y the nahla tad*AM of loan
ran-co plena,mrf nGbn or failure,rectfy sane at Lassoes brae. The wvrarty Periods&W be as t6owa.-(,� 6 manC4 as to:tor HVAC
syshertm.and(a)30 days as to To remaklktg sydam and ofwr sla narts of"BLAdIro If leases does not give Lessor the reqund noboe wt0tn Oa
gwoprlr•weeny Period,c«recaa)of eery usan rW-CQITW"1te,ma.7tnclon or feltme shad Da ire ofaigaow of Lase e so Lessee'1 sale cost NO
expense.Lessor also warrants.1,*unisex rrtlhrvdmm SP•cbed an widng,Lassa b unewen of M any recorded Notices of D+�tai else"she Pr.nw;
(n onY dBkVLert amoults due Under any bet seared by the Pramha,mud W trey bart.'tplty procsm6np ehfeci tg the Promises.
2.3 Compltanc s. Lasaer werrarYs OW to to best of rb VwAsdge Ore nprovertwde on ire Promises cort{Ay with Ifte ou"M codes.
OpPdcebie In".covenants or restrictions of record,regdlshons.end wdinertcm(-Apptdcablm RoVAronnenb')Nor vwa n asses of ate tame NO each
rtprovement Or Palos dwool,vas rnnathtr:Wd Said warranty does rot sppy to the use to Wunh Lessee sell Put he Pme rues,inoQAmtloru wthkh
."h•Y be rtggt*ed DY Ors AmrirJRs veil Ursebllfl6f M o grry esra,r lsws ex m resti/l d Lmssai s hoe(see Persgnph SC),or to say Merasoro or L1tEty
vstalalon(aa divined it Fragraoh 7.3(a))ntads or b be made by Lesser MOTE Lana@*is mesponsiWa for determining wtwMw m not the
Applubio Reyulis rtenb,and espmclsly the coning,are approprlma for Lammas'.intended use,and acknomlix"that past reams of Me
Premleas may no Irtgar be aliowsd. it re Prertnes do rid crrnhry-th sap ttrararey,Lass stir,except as othervrlsa provded,promptly after
mow of mitten. from Lessee selry fomh WOh spec"fhe rtalas and axMM of such ndrreoort lance,racLiy the same a4 Lassoes arperua. If
.,eased does not give Lessor valeen Miice of a eon-car piwtce vath Mas ymarr y widin 6 months 11D&P<V the Start Dale correction of sal
non-wrPUehra shad be the ob6gabon of Lessee at Lamsee's sob cost and expense. If the Appdrbb Raqusrnrts we hem"dwiged sc ss to
require Sung to tern of eta Lease ne consaudmn of an adduon so or on rerabwt of Ne Preenim tlndix Building,the rMleryatlon of any
4ayerdout Stnstatnm,or the reidoroamenl or othae phydcmd modiarmbon of the Lk*Premises widlor&sat"(•Gspltal Expenditure'.Lessor and
twee ahal adocale the mar,of such work as bars:
ja)Subjscl to Para~2.3(c)below.U Roan C iprtai ErpuKkLjr=ore regL*ed as a revA of the epact and urge tea d the
Precrrsas by Less"n anrnperad Wti uses oy tatnarits In perw,r.Lessaa rtr be rusty m-Ax rssti br the cost Natrsof,pvoldea,however that if uKn
CaPW Epend1fi e is ro"red dung le lags 2 yeas of Use Lessor end the cat Marmot amueds 6 Rlordis Brae Rarrl.Lessee may Instead ten diva"
ttvm Lease t:ratesm Lmsaor nclees lease.in vesng,*Wile 10 drys ahlr reo•W of Lessee's lermiratIon nouca Oral Lessor has etscsed so pay Ue
drfsrpnce bettvaer the mantel cost Twoof and an arnmEA equu to 6 mousier Berm Rail If Lesser slects tmrritason.Lesam stuff MnedaNly course
Ile tree of de Prert»es which requires wdh Capial Frpend've and dearer to Lessor valtlen noboa spocdystg a lerrnnlon dab at Vag 90 days
1harom1W. Such temrowtion Ores steel. however.n no event be awflor Fan the Las?day tht inseam emsd legeay utf o the Rrwrsses wibtou
corn-roang uam Copit i Erprtritae.
(b)fad such Cap"Experda,ae to not the rm*d Uw spsc7ic sad un"vex of the Prernia ma by Lessee(such as,govermrsHsay
mendaled satemic modlataaons),then Law"stall pay br such Caput Ehprsi and LOmsee anal orfy be onrgrto b pry,each maldh dung am
rernander o1 to Wm of Ihh Law or any srdertaion tttred,on the data Met on vt*:h ire Be"Rana ls Hine.an nmtar equal to 111441h d the Portion
of much txats roaowubty finmA table to Ute PrarrWm. L■we sltal pay kTlsgi on Ute orrice but may prepay Its ubigabon at wry sae.If.Morava.
wort Caplet Evendiltu•Is requr ed dung the ten 2 Yuan of arm Lena a 4 Lessor reemoneby dater rwm it at l Is not accrarNruity kassibis to pay
Is share Ifteraor.Lesaor mh W nave Oa option io trrnkwtm Use Larose upon 90 daym pror yerUen rwxi to Lessee mimes Lsaxe nodf6as Lessor.In
.Mktg,WChn 10 days tear soaps of Lessors Isrmiafon notice net Lana•wi pay for kuvh CAF" Etpenckus. U Lessor dues not dad to
trmneAt,and faits to lender fta share d any such Capital EtpoMbre.Loewe ray advents such stands add deduct sore,vAg h IrtemL from Renl
tntll Lesmaes stare of such mats have amen k y Paid. If Lessee is ursble to franca Lessaem ahae,or it the ba<ance,a ha ROM due and paysbie la
Om rernmkhdr of this[ease d not suffhvd to k*y rwntmxw Lessee on an~basis Lesser coil hevm the ride to to minW ti'ma law upon 30
days vM an nice to Lessor.
(c) NolvsMhtaWdry the eibove. the Provisions concemrtg Capial Expanfthaes are intended to appiy only to non-wambry.
unsttpecled,rd new App4ceble Requirements. If Ina Capsmf ExprmMuas are yaysed tnggermd by Loea@*as a reWl of an aches or proposec
CIO In Lao.dWVe In nbra[y of one.or modfrellon b Ohe Pr ruw Nan,end In that e+wnL Lessee shal e*w(i1 irrrn•dM*moms KA-b
dunged use Or k'v'airy of Loa andfor eke arch Odor chaps as may be necessary to aannkete Ne reciLkamrd kv arch C pdM Fiyerdran,or(l)
curtplexe such C•Ptir Expenti6xe of U ow ehperoe.Lessee ahem not,htovA hw.have ary rigH Ao Immhnama fhb Lame.
2.4 Acknowiedgreente. leswe ackntov4edgss UNW (a)it has bow grvan an opporharity to neoecf add reasse Oe Premlses.(b)d
has been 6Owlsed oy Lessor wxl co Brokers to saltsty lead wits rope to am We and condition tX the Pmf U@tm(itr*xing bud not named 10 6'a
ratedrlcal,HVAC and Poe spnkfr systems,asaxty.wvwtD xrwrvW aspects maid cafysrtw Wei Appatabis Raqu*ements and 1w ArncMvn wdi
13421011111 Pell.and Heir stltaCily for Lama's Intevied ties.(c)Lessee tree nude wan nvaaUPtion as r deerrs necessary vaigh reference to such
rtaftan and assumes al remportsibfty Ore1w as fie same ratre to Its oupAwcy of the P-wTiwn.(d)It is rxt ro#ying on"reprmsenutim as 10 M
gas of the Premises rode by Bookers or Lessor.(a)the sorare fooLVe of Me PrertJsem vves not rreavlel In[mmmue's decision to pass the Pramdzvm
and Pay the Rea eaecf herein,and M nathwr Lessor.Lessors agents.nor Brdters have rhteds airy orsr or varmn repreaematloro or werraoTtin vale
reseed b seen ILaft other than as sat kith n No Leers. In addtion, Lessor duro.aedges VtaL(, Bmkrs have mode no reptesenaWns
oromLses or vAnne*es mncern.ry Laasse'stsoity to horror the Lasso or suitability to occupy the Prervaas,and(III a la Lemaafa sole resportrbity to
evm b"Is Me fnertdsl capability rdrw uattabiiy d 20 Proposed beams
2 S Lass@*me Prior OwnenV cupanL The%wear tbes mods by Lessor n PrsgraPh 2 shed be of no force or elect If rnmedatdy
VW to the Slat Dab Lessee ww the owner a omgard of the Pranisas. �n such evert.Lesaae shut to respors"Ion awry naor"sry convd ve
wort.
c
PAGE 2 OF 1 T
T1AL3 I WMALS
C2001-AIR COWMERCIAL REAL ESTATE ASSOGLAIION FORM STU It4W14E
3. Term
l i Tenn Tor Cam nWxWF 4 Drs,Elpredon Date said DVti Term of 0Ls Lee"rs as spaesad I1 PwsorW t 1.
3.2 Early PaeasesawL Any PrUv% q ttaekt p-MeV Liver I"Poarmlm of Ms Pyanfims Is sad to rid wrrdUoned upon i!r
Phrtrae6 bakv swabs liar such Powetalan prior to Me C.ormwxwnerw Dad. Any Ward of Earty Possession oly mm"a rnn-aridwa Act b
0co4y Ts Pram m. If Lease troY Or Partially ooapir•s Nafrraw ydor to ON:onrrrorrrM Dad.N o0ilgolbn to pay Bore Rant shall be
abated for the Pr1W of wart Eihy Pausubs. N alter Wms of f*Law LYhdr&V mi r.et gnaw b ow bf falkwr Is pey R.w P,epa ,Teas
and Inafran 8 prwrirns and to moused far Prsrrbas)studs be In sflaa Wft KAM paavd. Any rrdt Early Possession did not afed W Evirmon
Dish.
3.3 Dsfay In PowNskm Lamar Wass 10 tea a bed mrmnardry raeaa obis afforbt Io d&kW Posseuim of to PMMIsm to
Louse by far Carrmrttamat Do& If,&W"add atom,Lessor a WAN@ b dsiw possession by kxh daft.Lessor doss not be..bled to Try
labiky>hsfrm.not did arh hi►ra anted W walMy of hi Lsew or dwVv as F3piraam Dora.Laser"not,howevar,be obipaw to pay fart
Or Par 10 e1 oflfr otlgst»ns W*Lassa doyen Posasaion d be Premisss and any period d Fort a0asrnsnt VW I-mase raise ofrwrse Iswa
w 4 s 1 ern kvrn far dad d&*JWY cF Paaaetsbn and o0nlkkm kir a psrlod 9c;M b.rut Lese wae0 WwvA s hang mpyW under far Irma
Aced.but nibs any dso of de*caused by he ads or ansaiors of Lessor. f PosMgion Is nal 00@%WW rMth 60 days afar far Comm
Of,m the arms may be OAWXed till 06 the dens of arty Waft Lahr marled by Pates.Louse may.al Ib todm,by. in rftft vwton 10
days Ma ere and of eixh 60 day period,r.C fm Lars.in wrwch ever to Partin shall be dti h&Wd hem d*Naltiors hsrnndw. M ax7h
witen nabce a nal rsoshed by Loma rrflll said 10 dry parlad.Lssaw`9 b4W b Card a%" Irniais. If poussaion of fs Prernims Is nal
ddywW*pin 120 drys~des CoTwn x*rrart Dale.Nor fare Itllala nrlbas Olfa&Vv&T nla an I and ad belvim Lessor NO Lessee,
in Mtr9.
34 Lsasm Ccm;Aartce. Lamar&has not be reared he mew paumelm of far Pror dwe b Losses wO Laws@ mmpies wft d
oAlpafm b Prawda eyldrfca Of murder*(Prg10 S.S). PON* datinwy of such w bbrics, Louse Nd be reouined No perform d el to
obspallas uWw fis Lassa Rom and dW Ifu SLn Dees.Yrda]ky the paprig t d RvnL ritOw"Iebndifg Lsssoh aleabon Ice vMridd possession
Prdnf Feabt Of auaf evklrra of nrrrme. Ftrfw,f Louse d Prated to pultv., an ofw=ndnlw4 pfkr to or om4srert wrih fa Start Odd.
Ow Start Deb rfaa oaar bW Lassa may Bled b%WM Mssasdon Wo reel aondlias an aaidled
4. RwfL
4.1. Rmrt Dowd. AU morstary oblgafors d Lasses to Lessor under M bmu of bra Lsaa(eaoR tar 0w Ssarty UepoUj are
dearfed b be Tarn("►La n
All Payment Louse Ihd catae psynunt of Rat to be recmad by Lessor In ImAd moray of ass Lk'ffbd States.vWwtr dffa or
doducbcn(a-ceA 4.•peclilCaly Peed In arts Leine),on or before far fty an wltdf A Is 3a.N morstry amouh4 aft W rounded b W rrerrl
Wit ole doer- h far fters PW any*%ool Manned by Law"Is Ihw=n"mach Ismraq fur nal mradbla a rahsr and Lesaas&W be ablik asad
10 Pry es ammo ear l rth kn fta Lads. Rest 1r any per W SaLy M Yen trod arch Is tr Ism fwn one h1 calard rr mare shell be prr.Yd
bred upon fa acfai nastier of drys of rid rnatfn. PsymwA of Rarn shall be msde to Lamar d Its adtirsn stated 0 a 0 or b rarh cow persons ar
Ones es Lana may corn am b fens dempsts In vaW& Aoosplrfos of a p".wf W*A Is Isar than fs trout tan dud sftd nal be a writer d
Lassar's Alta to Ow biance d usef%Rant_regardless of L.rurs rwlvs.rwt of wry vwri vo im". In fw avert fist any dfea,drank or 09w
IstuTwd o1 paymert dhrert by Lease to Laser Is diNonaed liar any rearm.Louse afrma b pay 10 Lessor rw wan of 925 In eddeon b nary Lad
Cfsrgs and Lessor,of 4 oplion,wry migA r kabre Rant be paid by oariers cord_ Psyrnanis vdl be applied test to scahrad Ire dtlrAa'a and
sAarrtra Few.award In accrtied Itersa,Men to Ste Rat.Insurance and ROW Prop"Tmu,mid any n isink smart b wy dttw 0kAstrndfnp
OWN of ooara.
4.3 AasociaYon Fsea. In addelon b fie Saw funk Verse did pay a Lamm sect moth an amour a rAd b ary owsr's
auadsf0n or mWonirtm Yes Wed or assmand against far Premed. Sdd.,xv tors*we be paid d far sans tYne and in fw wins nwnw as Ma
Bar FbwL
5 SswrRy Depastt Lases shod depot wnYh Laser upon aspAlOn Ired far Ssruey Depose a scurvy Fr Leame's Fain, prlmrfarxs
d IM obfpetI=trader fta Lomm a laser ids b py Rest.a dlraWw Daditts tstdar fb Law,Lawn may tar,yply a redtn 1111 r Try prtlrt
of satl Saarty Deposit for far peyrtwt of any sToxg WmLy due Lamar,for Rats wNidt wr be due In ifs hlua.srW rr to ralmbvr or
wo,penasb L.Issor ter any- - ,,agree.Iona or dam- Midi la taw may rrdr r irer by rwam dared. If Lessor use or applke as r ON
Portlan of he SsarreY DePaW.Lomas send satin 10 dye gfisr rrtpn req,a I fnwaror OapOW wtorles vdh Lessor m AdWA b roe*"said Sway
Depost b he kd arnrrt regLm by pia Lease.If hs Bass Rad tubers dxN to Wm of MIs Loam,Leease dal.upon mills nKpmci hwn
Lase r.depose adresoral maws wish Lessor so Mr far War arnwml of fw Searty Deposit Mal d o ttinaa tier an w+r pWoNon to far
tcmw Sam Reel as far In"SearfY paned bore to far trdllal Bass Rrd. Shalt far AgrsW Ur be atnrfded Y acwmnodrs a fora nor
dWW In In IanYsu of Lamm or b secormraemft a st lessee r asaigrnm,lassar WW tor.far Agri b kv3seae fie Seamy Depad la far
WON necessary,n Lmsds reasorabis kart,to avast tar arty rlasasad wear and Iris fiat he PruTmes nary Ater as a marl Hared. If a
chrtge It mfI of Losses oLars dlrkfp fir law and IsAoritig such dsrps for Anrfrled midlob of Loewe W.in Lasasta twonabas kaipwent
WFACanfy reduced.Leases who dapoatl axh aadUonal miffs vdm Laser oar ahaf be "Abowt to wars des Ssarfy Deposit to be d a
cxmrAr eny rsrasbie level bawd on such chahps In Iblrmclo atrmAki. Later steel rot be Tasted b kssp to Ssaalty Depart separate tom Ift
900 aecdraft Wiyi1 DD rays afar fw ermiekon or Ymfltrlon d tti Lars.Lsuar Nd reLrn bel pxlw of fw Seosty DeposA nal used or
applied by Lassoes.W Phi of M Secufry Dsposf did be omoldored to be held in ter,to bow itwer or to be prapeyn ers kr wry—tea to be paid
by Lamm trdr fb Lee"
B Use.
6.1 Use. Lamm aluf use and ocnpy eve Prwn orry for tar Apaed Um,or any oarsr opal um wrtcn o rassoneW mnparada
Usrtb,tad for ro afar Purpoe_ Law sat not Use or pwmI far us of far Pmnisu In a manner that is untewAA,analm drtuge,waste a a
nJeafoa,or rat disarbs occupants of or causes darru"to nskR*cha9,w we r prvpenim-Ouwr Man gkAde,yes and WON aye dual.Leases
Mae rot kssp or cow in is Ptemlam any Pea.W*nrs,lids.fah,or reotAn.Lemor shall not wwerordry Valk d or ddey is[arsenr ho wy
wrthen rsgtaa kr a moakatlan d far Agreed Use,so OV r far sanw fir rot kWtl'far WjMwr Isap of far WWnwwrsnr on tie Pnntsas or
for nwdMnleal r WtY1gl sysYma b mar b,arhdlor he not lgffftrtfy mars budwv b es Prernhtsee M Lssaor sleds b wMrdd xrset.Lessor
Nes~7 days alder tuct repast due writen noW%:xl on of umm.~ndke Nell iradf an sipirwfon of Lmsala oo*diorn to to ddw�_{p,`inPAGE 3 OF 17 SAY
KTLALS
COW -AIR COMMERCIAL REAL ESTATE ASSOCLAr" FORM M-t&"M4E i
the Apread u.a.
6.2 HaaRkmassubetaces.
(a) Lim ReIrsln CMS4ML T)r harm-Itaardors 3ube4rvea-as used in to Ursa dal nerh try terser.
O bahnoa,or waste Whose Praaenos,Use.nwarbGk".OWMd, MWMtaam,w r"Mov,sKtw by ttnn of In tnmDYetlon Wall Other mn.rfrs
O wted to be an tr Promises,is a(Oer m pobteisay r4o6oua to h Pbk hewn,aalety or wallas,the orwirau.snt a the Prvrdoes,(a)regLftW
or aWMW by any pohsrrrserrtal auShO ft,Or(W)a basis br po1 11 1 Nb&o of Loss.to ON Oorarahwrl agencv or third eeM under any appleakes
statute Of aWWW sew theory. Hxxwdous S bsia air OW Itdude,but red be 4naed to,hyoacrbota.pettalsun.CMaikne,andhr crude oil or any
produids, by-pn�or aadlars Ha . Leases Mod not g1etie in ry weWy in or an the Prornme ofYti+condbaes a Reporbd*LIM of
Haarddhs SttAtatoea MthaA ne hnprees VW aloha mrotnl of Lazar and tansy cornpdn (M Losses's "penes) loth d Appkeble
ROMkOrnsrYs. 'Uportsble Lies'*d moan(0 lhe khctefOWn or use of any.bows or below gruLmd aI e tank.M the g ti P +•
storage,use,trrspobYot%or rf posaf of a Heard"S burrs bd requires a per"A Num,or with respect b oftc h a report loofa,nghbodot or
Rnkwu pilot Is required b 0e fed sett anti govwnrwri eutorey,wKMw(a)the presence at to Romans of a HmrdoLs SusYnce soli aspect
b Waldo a y Appaado Ro%*w—a requlse than a ndw be gr�w to persons rnbrthg or occuvAV to Preniesa or neighboring propsrssa_
NoMMhstan�dnp the brogaing. Lsaaa+ray use any ordwy and arrarary nwones resawaitty requirod td be used n the rtumM Carr"of the
AQsed Llee,ariwy off— o pples (copier Ww,Squad Paver,glue,Mc)and mmrnon h"ONald bri Q maertes, so hang"such was is n
aDrWor"with ad Appicabis RaPsernera.is rot a%portable Use.and does rat aposs the Premises or rw4bot tsoWty to any nlm*VhA
rM of Owtaninobw or dariage or tipan Lassa to any NoWly VwWor. In oddlM n,Lessor rney CWddpDn a aMWX to any ReporLbM Use upon
rocahtng such addo"aura-cos s Lessor reasonably*memo necessary to Protect IWd,is phbac,the Prerrfieas andror the anvrwhrnord agial'st
darer,oontamYhMd1.wVM andror choir.h+dud>Q.W nor bhtlod to,h Yhatablon(and.00,ohd on or boars Loose savrMlon or tsrmnswn)or
Pcsectiw modMlQars(wO3h as MM3 encawrrhrts)adror 1 X7080 h Seaway Dapaarl
(b)Duty to Irferwn Losew. t(asses bwwwa,w has ngsont"core to boSevs,M a Haurdoas Subsumme has corns Is be
Iecsaod hn.on,under or about the Prwrssee,other then so Irsvim*wnaw- b by Lessor,Losses shad kmrdalwiV give warm naece d such lac?
to Leas.,and Pwee Lesaa Wth a copy day.sport(ests,dam a otm docunloYadon 4vch a hM corer tk g Ye presr><a d uadh Fiazallo s
Sure, I
(c)Losses Mnftdlstim Lou"shad rot cause or port.any Hataniots Ribbon to be spud or retested In.w%,wider,or
shout the Prenrses&%lids ng No" to pturtftg or safsery saver aysbn)and she pruw4*,a Loseaey coprha..oorply with OR AppScalre
FbaAmrhwta aid tote a krAmbomk y ad".0 adiwl at]on reaeonaWy r000mrnende4"leaser or not rmna/y ordaad or reefed,for the derail
of try caKrr*wbon df,and lor the n atn -Anne,am;uft adra.nm*jxkhg of h P.ensame or nsigiborkrt praVulas,IhM sea creed w mdrwy
CorerbusW tD by Lesson.or p&Aokfnp to or kwoMky arty Haardo s Sububw Mvrpht ar n to Prose set during to term of Cos Lesser by or kr
Lame,or arty third wTy-
rd)lsasee lnW lfiwtbw. Losses WW lmdomhay, dslyd and hold Lessor.Its agrrr,srnpbreas,renews rid grand Iesaw,
d low,Itmrrreesa hem and agsrw dry and no am of.err atdtor dertages.RKlaos,Ax*mwft dolma.aWwaas,psraras, end oWmars'and
conaLMAnte ices atalrq o4A of or kwdvip any Hazardous stedanos ttrwgtr Aso to Premises ty or w Lemmas,or oy thine prey Wrwded.
however,Met Leseee"have no labday under thin Lease vM rasped to utdwgasd nrgrMion of try Harardota StbsaaKe LOOM&0 Prsmises
tom edpmnl WWwbn not aRMAd or rsradlsd to by Lesees►. L"Ma's abIQMbra tlM tttCuda, RA not be entftd 10, the aftds or any
owtamsubo n or nFay to person. prop"or the arnearnwnt created w mAwed by Less",and Ins cowl d bavessgsim,ramowl,nnrdmem,
reMorva n artdku mbstenw*and sine a%+A to apkoba or tannketlan d ores Lana. uses ftrmh-.atk 4 canclliwbm or rotea"agrssrsrtt
entered Inso by Lester wW Lose"shall release Lmeete Mors id obfsadons under this Lew with respect to lbsardmn SubOtancss,urWse
geckRcafy so.wood bur Lasoor i n-M i at Ste Ome M ouch ag eeewrt
(a)Lwow kder of icallm F_cap o abwMas p 7A W in paaWVh 5.7, L.aaar and Its successors and nwipe Mull
i dwntty,defend,raknRsse ad hold Louse.Sow aT{tbfaee and krndrws,hrtthdss Aram and egsW any and of auAwswrhel drnages,hdudbW
h coal d.snrdaaon, w1sch re"hem Haadaus Stblo+tows attldt erhYd an h PnrWw p)w to Laawfs otnrgaxy or FR*M lose caused by
the grws negSoence or wan" n.scondrd at Lmosm, as ogenlo w esr9tefeee. Lessors obdpaaoro. as end w4wh r**Aed by ore Appdcabis
Ragtrerrents,stud ktcYb,bat no(be ind♦d to.to mat at rrnos.M.m7wb tion.resao oW ardror Mlaerrwtl.and sfwii ruvhiws ore
nprdon or tons dw o1 ruse Lease.
M kweatlgotipre sod PlexodisKona Lessor o1eS nlMn to raspaabdly and pry for try kwee902*-s or r—bcg son
msMurss MgLWW ay govsrrarnrftr aetfM naMa W6dCIW oral MIP@d b the 4"10 d FWaMas 6lbeftraas on the Proriess pbr to
Lasawrl o=upahry.uhlaaa such rerrndallon reaaas is ts¢Nd M a rMM of Ltseaeti use p ndudng'AaasiwW.M dMYed kh WE~7.3(s)
bsroaA d the Ptr do s.in~awe Losses anal be ra"tnade for such payra* Losses MM waporaft hay Lot dry such ece+aws at the Mgsrer
of Loam,knack do..ng Lessor and Lasaors ryw"to ram mswuW asses bore PnrnYset se rosesnabis wine In order b Crry ou Lessors
r&v9lga"and rantdal rownsbdees
W)Lsswr Tarn kulton OpWm tf a tbrsedas Suboor s ConOSorn pee Pat&WWn 0,1(a))ocou s"fnq the term of tuts Leeds,
uses Lessee Is lsgdy seas- 11 Cwabr(in Wed,oar.Lem*heed mot.Cho arvesnpolbn and MrtedMOn Manol regtfad w h 1'VPk+ale
RagLfwrwRs and Ws Leow slue tcontime in ti for=and*R*M RI wAted to lassoes Poo udlo PwvpWh&2td)and Pa'wwh 13).Lena
may.al Lanes 000on.rower(r)rrwoollot and rernediala Such Haxwdot a Subaanm Cormlkwi.If required.M soon M remeortsDy Poselbb at
Lassoes anpensa.In W M avert f*Loess cruse cantos in tv Aw=and aged,or(ihl 4 l ho tarrdOW coal to renna6ehe fad,corndbwn anode I t2
tknsm air then rnoryfey Base Rea or SIOD.000.edichmom Is petal,on wV%n reYow to Lamm.vM h 30 rya sear r.=lpt by Let"or Iawoodgs
ci ore ocasrsro of sudt h%zamts Substrnm Corn3br,of Lased► I I ID MIN 0 l gas Law s of ore daft aD drys Ewrdng ore dues Of evdn
raaCO In ore event Lessor ebc!s b"a e"Alton wilm Loses my,wino 10 doys CnreaMr. gtw"Olen F iD Lassa of Loesat'a
amamen to pay Ou rroun by wfHctl ore cowl of re wriaclalln of such fbclodois Substance Cannon aooesds on rmur qua to 12 lor+es ore
Own naMMy Base RKA or S100,D00,-Owrewer Is g.aser. Laaaw shot pro id.Loon+ wMh said tlnds a B&OWoctriry musr>m awed wRTn 30
dal taavvAry nude mrm»Wert in such eves.tit Low anal oanhus in to force and WIOM and Lossor shal ww"d to rtrlte such rsnrdsaon
as sash as reasoroo*possbe Mfte De required fads sn available. If Lasses dose not Owe such roaot mid Prwlde air requiret ids or assuance
Cod wWdr the tkne provided.tit Lease shal WwMate as of the dais opsded in Lassoes roses d srrnawmw.
5.3 Lseteey Qwnpller, wfth AppicAUW hquinw as Euoept as oCnrwir prohmdsd in fro Lease. Less"anal.M Lsssoi s
PAGE 4 OF 17 &&
114MALS
CC001-AIR COMMSERCLAL REAL ESTATE ASSOC.LLTMOO FORM 3TWIS4 l E
dale awarm. key,oolsray and In a Wnoy merest,rtaarwly —01 vM at Appbcbble RagAwwft. lw ragWrrrwrts Of any eppkxbk We
Insurance nnaorvstsr or ring&Mow and aw rsoormwv4sons of Lssews argnsafl ardkr convAerm wit Mi fa n any Morwr b aw sndn
Rspasrtwwb,WOLA regard lo whOw wd)RagWrwawnb are now in alhc or MOW"afladvs Ma to Slart Da4. Lessew and w dlin 10 days
after norµ of Lessors nrtr,request,Fro,ld.Lmm 00 WPM Of ar W"011 and 0etar Manwrs,and OVW M mine,aMaenr Lossads
Mmoo ice vAlh any Appil-ble Reguirew—apart ty Lansw,and aha krwndr LqM rocsipL naWy Lessor in ss3+t0(wrth wow d ary
dbamets ktvdved)of any Onaorrad or aMlllel else".nOfce,demon.vow,b wmphiN or nallOrl Pori nkp fo or krAMV fw Y4re of Lasses or fw
Prone es b con"wfh any Appicesls Rpuwnenfa,Uknwes,I—clef hat vedoloy gMa wren norm so Lessor or:(q any wow da n age to Ltw
Prarl00 and any R1sp6ded ZOOPOW pochN,dhpnw Or alum oxigbon cbnmvdWa to to P M%NA n of Mould;or(1)any naabnews or ON adore
I*Idyl*I fw presence of mold In he Primus... in addiwu Lasese ahr prowde copies of as rebWa4 mualel apf"dens BMW n&X)b
Lesaa aril 10 days bf fw nDcW d a wrtat raplesl losim In addint Leased she paaNde Lasaor with coplr d Ma bu*kmms kaaws,cerMkcaea
d omprvry a dhr dry akn W doarrwt wMtvn 10 dey d aw ecAlpt do vd Row regaa dwvkY.
04 Inyecllon;CeopNanu. Lossew wd Lessors"Ledar(es Opined in Paigrapll 30)and Owwu%wit►dW f%M far Agtd tot
snlw yeo Pnmtrse of wry am.n fw case of on alwrgehcy,mid setherWAae st rsKsowChe Wren allsr resaonatAe rh0i, .b tto purpose d klbpecbng
be cwxMkn of In Pnndeft and low Ar"N ewrapsartcs by Lanus mull pia Leeoo. The anal If any such nspocions shot be poll by Lesay.doted
.ddatba d Aspar�la Regutrentalu,a a Fis:rfars SawWrnca C.Ondaon(au paragaph e.t)d lard b.aid w bat Innsram a th Irapeclon b
ROW DOW Or 04d8lwl by a 90lartnwn4l KOwly. In such case,Lass."upon mires!ltnow"Lssnor for to cod of erct nspecour"a0 here
a allot Mapecdw Is rwmaby relished to?w vida0on or mrtaninabon. In WOW,Lessee atlaf proNde copies of ad sleMM mdeAr SOWY dies
rwos(M5D3)b Lessor wahn 10 drys d ttw reasbt d a wrfhen leq oW aaawlw.
7. Wntanance;Rapoks Mby lrsa Wlan;TrWe FwUmo rid AfhrMbna
7 1 Leessela ObEpOora
(a)ti GwwcaL Subyai to to prWafans of Perawsph 22(Cdndgon),2.3 tCon%As nae).0.3 RAsaees C Wrpiaxe wish Apt
Rapritfmaes).72 RAads Obgaboru).B(Donee.or Dassvrdon).and 14(Canderrrvllon).Losses attar& ei L.osses's ads esparws,bw to
Pnerttrses,Urry krtansYms(inandea for Lewes anyabe use.no mow Was bcatad).and Monsoons In good -der, caldaon wW repair
iMwaw at nwf the pc M^M fw Pavreess re4ehf repsee,w fa nwwn of rap"fw saws,we nesOrsbry w neday soc"Whls to Loss",uW
stafwr or riot fw rood IQ arch ropsks ocean se a nwt of Lesasa'a use,ay prior use.Ow iarw, or fw aP of such pciforl d be Prwnim),
nck d lour not bTdW lo.W egWpnwro or locMaes,wilt es p aroing,HVAC egiOrnarn.aio=IcW.opMro f.dW.,beisre,Pressure vaaads.are
probleb n aydem RxIms. wsfls Ciawbor end adaforl.fbuhdeMins, colirgo, root, roof 44wwWo ryaterns, boors. windows, dawn. PiaM yw.
MYS".WX=PM*Now"&,por"W. frlaaa,retakrivp vdh signs.sidewaka and patvays bcAbed n.on,or a4edre to fw Prsrrasr.
Losses.n keeping M Prerruaas in good waaw.oo KU= and repair,she ordr and peohmi py oe mairrenence 1r>ckeee,sprdamOy nddheg fw
poa+rrwt and maktwwvo of fw wrAce cork eCti raguaired by Parayeph 7.1(b) below. Lessees obigalbn rid ncdnde mobMaW .
rapiesrnwn ur rewwwls Mwrt necws rf to kM W to Prern ow send ad nhporaewnoa flfean or a Pat I erA In good ardor,oatdaion MW fiate of
mpaY. Lewes*W.during fat sum of Mid Lassa.kasp ra ayai irapperaIM of to 6u16Yh0 he a Gst4ss co dW ( 0.g-"M W--)
OXr Lqa nth In auMaior appearance d afar.code teams of marg I ago ed sts In to deirdy.ncLanp.Mtan nebnsay,h.)ftnne
reparring of he Btddenp-
M)3e4vka Car&wb L Leases". r Laaass a mob asr .proem and manYn oorsracls,vdh copies W Los=. in
0urwrwy farm and substance lot, aW Will mlbactorf spedolikkp and wiPelW:xd in to nwiNrwre d to fdwving squpmel wW
knprMemorts,a any,If OW wtsn katebad on>M PrurAws M HVAC aquipwa,(a)boor.and pressure Wassebs,(i)ire wOngL l"syderns,
nerrekrp here dam andiW dents dabscOm(M ra I I l n wW I *aft ayaarw,M mol covwfe and drakes,and(vi)carfbors.I•SwwWa.Lossew
rendered fw Ayes,upon nOb[e bs Lessee.b pronm wW mairaon any or M of weir sarAce mrwecb.and Leases dW rakabuse Lessor.upon
donlOW.for Ow Ooat Vwvof.
(c)FaMnre lo Psrhrm. 11 Lasses fans b pefonn Lower's ObIWOons urww as Pareeaph 7.1,Lessor racy wear upon he
Peen ises afar 10 deya'prior vrahtwn nose to Losses(onmo in Rho case of an sun o pony.in Nnkh use no nea0s awl be reQAred).p ftm.,h such
obbgadaa on Lessee's bOW,and put fa Prornilm n good ewft,corallbon wW repair,and Leans chat pronely pay he LCosa a an equal to 1131Y
of to cod Moreau.
A RaPbcsnaent SubOw so Lasses's it dwrna5cabrt of Lana a sat lorfi In PwaWsph 8.7 below,and w ftnA riving Lansaw
of kstiy mou"earth Lesaws fain.to at w wand pabrm pod lrlwraerca precsces,if an am 6ascro.d In Pwmgr.0 7.l(b)—.sun the
repaired offer fan st a cost Mach Is in mcna of 50%of few coat d spied lg wsdh iem.hen such boom aide•be replaced by Lessor,and fw coat
arced ahrl be Prorated bebom n tw Peon and Lasses s1W or"be dtigmW 10 pay,each mwfh dtstwp fw remainder of to ism of eke Lena.an
7w dale on wtdM Raw Rat in due,an amaaa e2nsf b fw produd d Moil 1piyng fw cool of such rap4arlwri by a keclm.he nrrwslor d Mach is
one,ad fw do me,-p or d allfch Is 144{Mir I M 441h of fw coo per mdnlN- Lessse dW pay Inev wt an Who uwrmMznd baW= bW may prepay i
OWDadon M ay rote.
7 2 Laasor's ObagsUan& $ubpd b to proJebrw at ParMoO 2 2(C4FO".2-3(CnrrTftr"),g(Ownsip or Dosauc)On)and
14(CO VWMOM).k It tftn ed by fM Pities Wet*hol Lead hew no obligalon,in any maw wtanawwr.lO ropes,and mslldn fw PrarlWM.
or do agltpawet tome,are of vAdd obigabons ary knherWad to be!W of Pr LMWL f in we knta4bn of on Pa1wa fail the brass of War Lesne
Dover As respec Ove obigdwv d lh Forbes a b nwnawtaacs and repat d fw Pro dads,and Vwy aipressly waive Ow bwaM of any aabls now
w henwilw kn eQad b fw exM9 M is L Kxa my fanl vM fw wms d fora Lsew.
7.3 IJWRy btatallaSam.,Traao Rears.;A►ersdam
(s)DefkNtbns, The hemp%pibfy inaftWans'mfors to al!llm and wndow coveilrr�.t ardAf nraaAan Goa.Paler prwfa,
eiecrical dW u bon,secu ty"Am ploseca0n gehens,ornnam ion" n ar on
far Pkrreasa- The loam'Trade FbrWm'shoe mean Losewes msdtktay ad ewpwa Ml can be rarrlOvad wihal along mono"do. 10 Use
Piri>kaa. The seam"Atbenaora'she mun wy modipgon of fw kTWmwrrwflW safes fan Llooy irsu aimm or Trade Fbnufa,vAwtw by
addiliwn or d@Wtw. Les"Owned Alheredw srdlor UMW I sbAwdons'arse debwd es Moves"and/or Ulby Insdbstlws made by Losses
Utr are not yM Ovawd by L&OW purwreM b Pwaylph 7.4(a).
(b)Consent Laaawe dW not meko M ARembons or LWy Inslateborw to to Promises wawuA Lassoes Prior vrtlon acne
'_suss may,tnwavar.cote non.atrutlapp Memo—or tidy k-alalona to fM mute of to Pmyaes(azA+3p Ow rod)wifwhA such corsara WA
PAGE b OF 17
w IffT1AL3
62WI-AIR COAfkERCV1L REAL ESTATE A330CLATION FORM STM-1 G- W 4E
Wm rhdiom b Lessor,is Imp r tiny an reol vierbem korn fee ohaaede,do red#vrdam puredakq,rsferraYnp a ratw'iV M roof r nary aMmlkhp NOW
wi not erred to siecMicas,pkenbkhg,HVAG,riftr NO ealey aydrrw,and to ommbWm cod Mwamd duty rut Lease r aotanded does tics
mAcesd a ban ague 10 3 rnorlr, Bar Rases in he aggregate or a sum wpW to dew o 11's Base Rant In any one rem. NohvQhm%ndYp Mw
V,Loser sh"nd mekO Or Pm"MV root Pan*IfiW a■6W WOW wsyftng an fee roof otAad to prtar wdsart approed d Lasaar. Laser
my,so e Prsmldhx b gradnp and+approval,rvgw Lessee to USM a corarldw Born wmUw approved by Loam. Arty Amefaimm or Lwy
1nwlamMons tosi Loans dhd desi a to make and waAdh re¢rem to comer of to Lemma dra be praearsed in Lraaar to wiOhm torn am dat+w
Plans- Consent AW be doerrd c ordYonod rpm Lraw'r A)mc*"V r ode gooerrvtiernsi pen, (9)krdd*hp Lessor wsdt copes d both
fte Pon, and Mr OWNS and t OCIFIC lbiu Prier to cortnrebvtord of Mr weak,aid M aorommoom oath d motions of eaid per erW ofw
Appfcabk Rtgarenneds L7 a prop erW mpadMoui mrotor. AN Alenfne or UMV W%Udaftm Mrs be Deetmed in a awt i lee i a m i nr wstlt
good and mu tciert mataimk Latimer she pam. 'arch aortl;I I Ureah Low=with ae4uf par and spoof sl ra. For ark wfirih cobs an
wnoum n aomas of bra m r*ft Some Fad-Lmm my,muMm N orrwert tpon Leases pro%i*g a art and am.whoSm bond n am amaXA aqua)
to 1 SD%of far eefrnsMd 00i1 of a ch A1trodon or LAffy haLsation ardit ww Laser's pomp an a I "' Searcy Dapor%AM Lessor.
(c)Liam;Bored& Lessee Mara pay.Ow due,r dams 1r Wo or madmiMs kKrW W r AGKpd to twrs bear krrdMwd to or
br Lmamm al a for uss m tom Prernhee.wild I am or my be seamed by any rwectormes or malrfaerwrs fen agoind the Prrnion or any
etwsst Mo min_ Lever Mtaf ONO Laaaor not Ins Mom 10 days rh- , prior to fw armtrrcaewd d try Mori tin.an or about fee Prunion,and
,.emar add Iwo ow rvv to Poll rtOfices of rat-raaponMbflly. M Lrsr shad mrt"to twf*y of any aunt Won,den or dw - .fan Lrsn
Mama,M Is cola asp rrs dalend rd pea ad kid.Lmseor ad far Prornhes epM'hsi Nat manse and aug M and sad*any each admas}dpnwrt MhM
nay be no dyad Mtrmcn IaeI" to rhlora'trrs lured. R Losaw Mrf mgLft Large dud hnih a sully bond in an amara rant b 130%d fw
Naara of tad'OOrymmlmd sin,chain n or derrLm Idrimafyap Lomeor apMrst iobity sor Bw Noe. ff Lwaor iris to permrk n any mitt mrlrn.
Lauea Mid PM LAsaors MLomew roes and CDWW
7.4 OwroardtiP;%mtovel;burcav,,and Raatradon-
(a)Ownership. SLbysd to Leaacfe rigid to repro rarrbasi r Mad mwvmhlp as hereinafter pmAOe4 d AMrmmon end L111111ty
buta6aerw mada by Leases"be Ws Prvprty of Lossmo,but considered a pat of fve Prentiss. Lessor my,M any One,eisd in WOON to be Ill
caner d r at any sPed>!ad part of der Lessss O%*v d ANrmtloer and pity ltrtsfafdw. Lniess advoWn instructed Pr prmpnph 7.4(b)I+arrf.d
Lsrw Owed Aarafons rd lAty hda6aar dW. at fee aldrslim r frmlrMbn d mots Lanes, be=. Fe pepety of Lmw end be
marrhderod try Losea m AM M Prmndar.
(b)Ronx mL By dr'mry to Lessee of•a*hm notice from Lessor rug mmrir Men 90 all not Lahr OW 30 drys prior in fw ell of
ass umt d L'Aa Loam,Lmuor Roy rwpam fW any or d Lmo"o DwXwd Aauaeom or LAily Inamboborr be rwnwed by Me etpdmdon or tartrsfroah of
Mim Lssaa. Lamar my rearm the rmrna'wl M any Ohm of ad or try par of any Lama Ovrhod Aarmtims or UtIlty Iratamnorm made wWxxA tie
rogWdrmd axuwt
-
(c)5uara idea;Restoration Lasses Mid mAnwv v to Frnima by fw Expkaeon Does or any mbm Irarruiah dab.will'am of
the k perenrhts,lots and wxfwm fsmred biome Wet and ties of nbrls,mid h good ago M q order,Candor mid slab of repair,ordrw y vow
mid beer—pbd. 'Onlwry wet rid test Mad nd ndtde any drnsVm r dmsrtwsron fad wchad halm been PrmwdW by god rnmamerwree
practice. larwsftmmn&V tie kwagokhp, r rim Lore Is 1r 12 mantle a lea,Vim Leases stir munom r the Merriest in fw Same boncWw es
JoMrad to Lmor on tom Stan Debt%An NO afOwncs Ir onoe'ry Mar end tact. L.assse sthr raps&try drrupe occombrrd by fw hriaAeton.
msk+ssnr'ce or rrnoaM d Trade Fbk mm.Lessee ova hed Amaesbns a,doe LAhfly needs fora,ianlMn+pa,and mPiprww-A r wam r Our renneMI of
any M mg hank*"ft&4 by or for Lases. Lams Mua re mina m kom fw Prwroew rag and as Harwdom Sibobwscam brasyt ado Mw PnarrOn by
or kx Lasses,or any NM party(mocapt hiirtlo mi Scbstncr wfidh were deposited On use deVound rINWaem item arse amide of Mw Prardaw)b
to Woo!spmdfed n Appicabim 17aatmmsres. Trade namave sM remain fw prop"of Lamm all dud be rumored by Loam*.Any ParaorW
pmparty d Lessee not ro rhoved an at balorm ftw EtpMm Data or any srm tmntrWbn dale Mad be donned b%M ben @bertdahed by lessee
and mmy W dayoeW of r reused by Lossr r Laaar may deskm.The(sahra by Leases to tkmaly vac I In Prernnes pursumm b f e Paragraph
7.4(c)w2thbr to aspen written mad of Lee""cmmdkAm a hoi im r uarr f1'm preAsk r e of Parspfaph 2E helot.
1. IrhnXrice;IesdoemRy.
m.t Psymmorr For Insurance. Losses all pry for e4 mrri m rm" under Paragraph f OMW to fa GAIN d fhe cost
slibud"to fMdiy Inmranoe—, by Lesmnr udsr Pumped 0.2(b)n aromas d 1I2.0MOM per ocnatr'o. Prrrnam for Pomcy Period
mrmwrKing prbr to use wneradrq beyond tw Loam tern ahm&be Samrrmrd in correspond to tie Lw saran_ Pormaw and be made by trace so
Lassa Wdw 10 days MficmAp rocaiyt of an mm"
11 L;OWRY Xnuranca
(a)Carrbd by teener.Lose"shed obtain and kemp in km a Corrmnercoo Cwww Liabily Poky of mamnw d Probdnp lessee
rW Lessor as n addior!trrumd mpairw dim. Par bodly W".perorW mmy W prop"demape bash boon or aretip and of fx—r".
Woe,oca;hnccy r rrrhbnarce d die Plrrtlere and so arewe ppXW"t toasts. Such inarrnce ahr be on on ocaar once boos prv4*r q Mrp1w
Ms&camrage in on board not Yee ton f1,M0.000 par oamanawn WIM an wmbd mgprvgase of Ind lees then V-MC.000,tasty shish add Leman as
On addiorW MWXW by aW rr of on W drsunart a tiro r Most es fee nKraIM SSMra Qpfftm&v a'AdatlorW tnsuedYanagrs or Leaam
d Prsrnluas'E1WrMmanL The poky awe not ooMeln any nRYMrXed armors s in ba worn rmrsd preons or oryri>rocm but mWl kala0e
ormno b Mbity ecnrned urWr 11%s Leese sm on Stirred toerect for to peAorrrhrre of Lense's i do ey oMgrbrr uabw all Lora The
knb of m m tirXarx'tor not,hoomw. 1mf f1s rbbty of Losaee nor moovm Leases d any dhtipafm hsrmundsr Lanes Miss paorde rh
rdaarr'erht on b Imbily Par-y()n)WMHh prmidr two Its hrvu Ova be piImey to wand M-Wdr%44ory vrh any mnir Murwm w*wd by
Land,wthor tw nonce mho be cortekbrod exam nwarw arty.
(b)WnMd by Looser. Leamor did ms<an WRY imrahce as de.atbed in Para~"&I In odd"m to.and not n Imu of.
fw kotrmnco npred m be mantarwd by Lawns. Lesw der not be rhnwd as On addev'M iWm f'ron.
5.3 Property irmno rice-Ousssn¢InipmOwerrhb all Rem Vaka.
(a)Bum dog and leeprovswrnas. The Insarng Pity cum obldh rot keep n harm o pony a Pdidos rI fee name or Lamar,with
Ims pymbis to Loam,any MmLex naw,and to"Ledo rru r g bus r darsupe b M Panties, 7tr Ummm d much krurro OW bm agtns 10
fw h1 Inwrabia hmpgwrrwM cost d We Paso as@m.as tom mama mhos a"tern Ora to firms.r fee w+wra rmghhmd by try Lntdw,Wt n m eves
mom gat to axnmwdady ressatmbti and avdabie'rmr"hsdw dared. Lases Oarnd Ammoom rot UWty hsWiabons.TraM Fblxw rot
PAGE f OF 17 %�
y S MiiuslS
O0m1-AIR COiMaERC1AL REAL ESTATE ASSMATION FOetM OTM-iO-" 4E
I sasee's pasOfW Property altal be assured I1y Lessee not try Lena. 1f t'e coven gs n evadable nd com morcb y appropriate.such on"or Poises
shel Ink"no"all ribs Of drsrd phydcid loss or damage(estept one perM of load arhdra eaehgirka iwtes ngnwed by a Lender),ildudsl0
Wiwi for de' removal and the enforcement of"Applicable Ragamterib requYtiW tie hpgradhg,demoWm.reconsh,csion or repho smort of
arty portion of the Promises as the ra"of a covered hoes. Said poky OF PolkI shal also—dam an sQeed vaivatlon provision to feu of any
conarrwvm c*ua.Nether of w1brogstim.and Inflation gtrrd Prabction raeYp an increase In the armed property haurarxii oowerage amoUt by e
faGor of not Jess Utan the &*rated U.S.Deport tent of Libor Cornunrr Pros Irtlda for Al Urban CArmanan for na coy nitareet to wdhee the
Prentiss an locstad If such irauranm covw pe Ilse a dedua6le dare,ti oo*jCWM antotrt Cis/Rol ezeed L5,000 par occurrence.rand Lesaae
Car be liable for such dedi+cilbie amai"In the everm of an Insured Loss.
(b)Rental Vesta, The Insuring Party Car obbsn and keep n farm a poky or policies in ter name of Lessor wit,lou payabe In
Lessor and a ry Lender,naislng the loss of Ute nt Rat for one year with an entitled pens of kWemnay for an adetlarri 11310 days("ieres:Vane
nRrance'). Said hsirance e'W contain an agreed vskiii provision In Neu of sry colrurce douse, and the annowA of coverage sea be
adOmMad aruoly to resat!the Pro(eUed Rana otnenwKa payable Dy Lessee,for the nand 12 norMla poriod. Lessee shad be fable for any detludble,
mount in the avet of such Yoss.
(c)Ad{acent Prerdhea. If err PrarNses n port of a argar building,or of a group of bWimngs awed by lessor hvtwh are ad}aceri
to to Renlses,Ue Lessee OW par far efM Wxr%a In we prefrrlts far lit,Kopary Heuratca Of ii Duflding or IxAdeva A sated Irvesa is
aged by Lessee's ads.orrtiashons,use or ocarpaiay of M Premier".
84 Lassie's Property,Busk*e t Irtterrupbon Insuni ;Watch Compensation Intsurame.
W PrOPerly Nampa. Lossee shall ablation and men!in enwenos coverage an all of Lessee's personal property.Trade Fbdtres,
and Lease'Dveed AJleratio ns and Lney�rou iirp . Sods I suriiie"shy be hA replacement cost coverage wan a deductible or not to exceed
I:,ouO Per ocurrtrce. The proceadr from arty ii marahce shad be used by Lance or to npiscamen of personal property-rode Fbeuas and
Lessee Ot eyed AltarMona and ditty maaaaborn.
gib)Bus' Inton ptilm Lessee Biel obtain and msNen loss of nrnms and i drat eopenw nurance In ornounb as wi
rertibirsa Lessee for dlnQ or indirect boa Of see engs attbutstte to al pods commor*1 nsursd agarw by pnrtleni*seees n the business of lessee
or alrlbutaoie to proverhllon at socess to the Pnarvisets as a mull of wdh parts.
c)WohKe Companasllon InwnnCs_ Lessee Cal obtain and marttakt Worta's Compensation Insurance,in Puc h arnourl its
may be required try Aypivba Requkerrnts.Such poacy stall include ii'Won e of Subrogeoi andorwnerl. Losses led provide LCUM vAh a
MIPY of Rich ordonanaerd rang vii ee crrtfsoto of Isusca or copy or the Poky required by P*wapn e S
id)No Repesatsdon of Adequan Coverage, Lessor rWem no reprserdstbn that the kyles or fomn Of coverage of nRffarwe
IpeCsnra herW as adequate ID cover Lasaae's property tusNua opi ratiore or abgpasona under tYo Law.
a 5 Intuwx*Policies. Insurance required herein shell be by uxxtipantas naxAs"swig the policy term a'Grleral Poicyhoklm
Rating-o'N Is"A-,Vli,as ale forth in that nut amend Meru of Tai Insurance Guide'.or suet oUw rating as may be required by a Lends
Lessee thel not do a Do to be done arryting wdnkh Irvrfdahes the regied rsurance posses. Lessee shag.prier to one Start Date,desvw to
Lessor GOOD ed' ;1 of policies of suds insurance or cer9luaats weh copies of the nquied ondorser ants wldsrtoq tie todsUnce end WrOwAS of
the required Insurance. No such patsy dui be caa:eMbs a subject to modicaNm except afar 30 days Prig wrnten nnodice to Lessor Lamas Wan
a Mast 10 drys prior la Lhe eVrobw d skids poioes,hmlah Lessor wkh evidence of foresails or"narura binders'eWderiong reirwr thereof.or
Lasser may order suet rm,;arks W Unrge lie Goal thereof to Laos".wfadl a7tourd shtl be payable by Leasaa No Lessor upon dirratl. Suet)
pofliso pal be rat a tam of of Mast arse yew,or the*ngM of the remaining tern of to Leas,wn:h~Is Mora it OWW very dale fad to procure
end noodan the nouratce reguvW Id be curled Dy A ale Other Perly may,but shad not be rtsgied tan procure and RIS don ON sane.
as W averr of Subrogai vveiout snewng any ones rights or reef i'l s.Lessee and Lassa each hersby release and robe"the
Other,and weave Moir axle r1i to recmer damages si the Other,for was of or longs 10 is property orWM out of or irKx or%to to p nits
required to t*nsued agelrt hm all The tined of kiM rfbasee and wslven Is not Irr*W try tie snlotrt of nsurorncit coned or ragtsnd,R by arty
dsduchbies applicable hereto. The Patina mi to hews over respoi property damage Irhaehce seniors wAna any dghv In tabrogrbn sal R.o,
awrgerrs miry have agatW Leese or Lai as the one may be,so brig as the Insurance is nol Invalidated Versby.
8.7 Indemnity. Excep for L&&+es gross negligence a wiau macorduci.Levee shall Indemnry,poles!.defend and hold'vo Neu
the Prentsea.Lessor and He agents.Lessors master or ground lenor,perrian aid Laden.from and agatrW shy and ad Claims.loss d rents atdlor
aarnapes,lens,IWgmenra,pereRea,anomirys'and ronur.n,'lees.nrpenses wxVw kabddMe atskxg oat of,Itva".or in connection wan.We use
andi omip.ency d to Imam—by Ls.e«. If—y si a pr000edng Is brought egsinst u.essa by rnason a any Of the foragoing RWMM,Lasses
si talon nonce delaxtl❑e fart*at Llasee's exgerse by counsel reasora i aalsalory to Lessor and Lai shall eooparala iht,',Losses In sudn
defense. Lessor need not have Jiro Paid any ii i chin In ceder to be defended or neorrvsaed.
8.3 Exemption of Lossof and a Agents horn Llabltty. Nolwihsaneng Tr negligence at broach of tfs Loose by Lessor or as
egerb,neither Lessor nor a agents she$os iaDM under any arwn&UrKM(or.11)►ray Or damage b de Person of gooi uses.men3wdne or
Other Property of Losses.Lessee's onployse s,contraction,hwOon,astamen,of any Orhar parson In a about Teo Prer>s.s wttetha such darer a
nlury a caused by or resAls born Pre,steam,electricity,gal,seta or tan,attbor sor quality M presence of mold of tram Me xsruge,teokegs,
DDttructlan or other defects of p+pea,fur sprinklers,vitas,appliances,pkxnbktg.WAC or ignkrng iodunes,or ham any olier cause,hwhetlier the said
injury or damage ramAs from codrbons ailing upon Ile Pnnessc or upon Mar pa lma of the bvadng of which Tat Wernmes we a purl.or kdm over
sources or pLsoes.N)arry damages arising fray any sal or neg via of arty Oder son"or Lessor or horn the lass of Lessor or as agents to onto"
the provlaions Of arty War lease in to Props,of(k)iryiuy b Lati business or for any boa of Income or PrePo ttha.ciram. IrrMed,it Is Inerided
eel Lesaae's sole recourse M a*ri of tu,di damages or Injury be to Ilia a dean on the insurance pokyo os)that Lessee Is req si to rt OMM
Pursuant to the prowWons of po agni 8,
8.9 FaBiws to Provide Irnauriti Lessee a*rweledpes env any fawn on is pat to ottWr or mortal,to insranee nquied
herein 04 Mole Lessor b risks and potentially aese Lessor to httr coon not cortampYad by this I w ,the eatam Of Wtchh yell De txrwr fy
dR%mA to aacmi n. Aocorangly,for"moNn a portion theroar Iwn Lewes does not maim#,na requied r.eurena anchor errs not P—Ide I essay
wet the rogil ed bindi of arrWcstes ovidendtg The wMer ice of the reyaied Immune.the Been Rent Efrd be adornwraly Increaaad,wthoie arty
regahwnard for notice b Lessee.try an orni oquef to 10%of the ten enatift Baf se Rant or f 100,whidnoher is grower The partim prove that such
frtreass if Base Rant represents fair arnd ressaruDir camgensrdon for the addbonr roiki—ts thr Loan wa Incur by reason Of Lessee's to&"to
rung In rr required Insursice.Such Iuease n Boa Rat stud In no avers caaLnis a welwH of Leti a Defa s or Breach"h nap//e^^U b the
PAGE 7 OF 17
9e, INrTIA►S
GM-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM STtf-1aOVUE
Issue to maintain a:h+brans.p vvm M sense of wry of M olfw r V"wd mrwAem Freed lwrwrtd".nor i do Lear of■Obipolitr to
mtantrn to kherrahm rPeothd in Onto Lamas.
9. Owmage or Owbuttlam
I,1 Def rAdorm
A-Pfetliims PIMAI 04P%W'dW men darnapa or desauWn to the krprowerrmis on fa Prwrise,oIw tan Lessee
Owated Aearnows rd UlMty Wwtedaaom .wlmdh on rbuenebiy be spies in 5 nsnfe or tows Run as deft of Ite dm"wW or deMutbn. Lmsaor
dues natty Levee in err"no 30 drys from M daft Of M darnmpa or afesetudim s m wtaUar a rot to drnsge to P soft or TI7tM.
(b)'Pterilsas Total DeaYuctlaf eM man darnega or dssovcam b to Prwnizes_cures ton Lases Owed Merall"and
Uoirty bmtamerio ns red Trade Fbasu,which t:anni reaacnably be raplired in 6 lnarra Of Was born M dew of One damtmom or dwsrucbon Lessor
flat Nobly Lmmme In sw"w*dn 30 dens turn to dale of tM dmnwpe or dostudion w to Mwdm or not fa do is Partal or Total
(c)'bathed Lame'"morn do negm or dwbvcson to apwarrres an to Premier,ode Ow L.easu Oowwd ANaremans and
U'lYry IrwtahttoBww and Trade Fotuas,*rich ar caused W an evert required to be co+wrsd by fr ktshrwrm dssabed in Paragraph 8.301).
nsepsdkw of wry OSOX*b Irma b or aowrpe tithrb krrdned.
(d)'Re}ftcernerf Carr dW mart M cost io nqm*w rebul/Me fmprorwrrb arced by Lessor w Oa Imm of fa oonnerra
(o Fef cortdtfon ottolYhp rnntaswmly prior dares, by t tlancAllm,dsbrft remaVel and hpgrdng mpaked by ea aperemoa of Appicabis
14piwrwft.end%Ml deduction for dep mclie ce,
(0)94asudatr Subuurxa Corrdltlorr shot sawn fa Occurrence or tfemvmry of■—dim krAK*p M presence d.or■
con ernhabon by,a Hznardohm Suastncce in,on,or under fa Per rnaas vA"reahaer aemadiamoeL
92 Pwtidl Drmape-hsund Lose. M a Prersser PsrlW Damage Fat to an Inured -Ds occurs,Ern Lassa".at Leamors
spwam.repair srh dwragm(bur rol Louvers Trade Faerres or Losses Owned Atelaft and LAlty trwladst o s)as mom as raesateby pa-aim
rd tIs Lemma tut oor4bsa In kl force mad efed;provdad,howehr.tW lammme shmk w Lessor's mloctiorh, imaka to reps of any drupe Or
tlnWticlon the total CM to repair of Wid W 810A00 or Mu.and,in wch wwd,lemsar meal mka ry mppbaGw irmsero premeds Mmmbia b
Lasses on s reasandale ear fa far purpose. NolsMmerdng M crapa irp,f fa rwt}asa oversee ream net in MMe a M Ramarcm proceeds rs
not wJkWt to~such repair,one as b the ded albim dech to Laawrt
MPoraCCOY1 as and titan rKAirsd b Oornpirft UN repairs. In fa trertl homwow.muds shatapu oft des tD the fart Font.by mown o1 tam u*us
nsumr d the Nprvswnwtes,%A aplacarwM east in mace coverage on not aw rrwrleey reeonatis and usdow.Lwraor WwM tws no o1 11 V h
to pay far M IfnOrtap In lnurrnce Prvomeds or to hey velm to wm*A aoaecaa of Ow Prarrieeb w imm lemma provides Leeson wrh ftr Inds he
over same.or ade%asa wnxrarxe Qw aaf,vAlw 10 drys lobwrng remrpf 01 wWW notlm at wdh ahwtapm and request Mrator. M Lessor scdve
amid Mds or adequate assurance twed wMW said 10 dry panod,d%PwM reporaEb for nests/to apei des/car plote Ire r earn s
ressorWly posoft etc ter lease OW roman in W b"and eRed. O much tattle or assurance as red reoWwad.Less ff" lema e0 des by
wrtlftn rtoeoe to Loser wehin 10 days NmvmW W (i mMa such.wahm@ dam and repair sm is oormtwdsfy re..W(s*0 Lassa psynp ray
mrtabpe kh pretax I ,n which team Fto Loma dot remain In fir Iota rd seed or(i)have Fto lama iam*mts 30 drys twestar. Lumme Wag
net be analed to reifdrswrewd of any Aatb cerraim by 1mwee to rapt may Rich dm, a or dwMxb= Mrrraem Parent Dane. dull b Mood
or asrlquake eh/I be SJ300 ho Pwu~0.3.noh4hetwndbV Imo Ire may he mOma swan a corrapm.bul to not Proceeds of may such
t m xwno fed be mode WOOMM t f tM repairs I msfo by alter Party.
2.3 Per0a1 Dorms"-Um imam md Loam. It a Penis Paid Ornew Md Is nor an krured Lamm coons, uses Cared try s
ne"nl or wOU d of losses On rhrtich Mad hums do■ffmtm des ropal at latest's Comnse),leaser may aeher 0)."such drrape as
Soon s rrsaedey poseele w Lessor+a,pwnaa.in sreClf we fie Lease star Caches In kl farce and elhal or(IQ 1- bhro M Lease by O-V
wins rotlm b Losses wrhM 3a dye arlMr wca�Dy Lessor d tonastedp d ter ocunrrot d much dwne/s Such wmwwMon fW bm Mfeckw 8a
days tOwAng Oa dew d mic h RotOa. in M ems Lauer dri b temrtbtm/a 1*Leans.Lasre"rahm M mom eaftin 10 ea"oft Pecov of to
lmrnkwaon naticw to give wrfisn rwobca to Lnuor of Laaeet'e am mMthwm to pay Per to raper of such cargo%hots rekebussmw ben Lassa.
Lasaee"p ry Ade Lessor vALh amid tad■or mal mleeory iwlaws thmssof rAt*30 days efler meting such cornruarrtt. in such tort to Leas
an"Matiry e P%l for and eea4 erne Lessor d+d e■erswi b nuts mach repel s me soon as namartbty poeamle arlw the rw*~beds an
armaada. 11 less does nod rrgke the requked commltrw d,Mes Lew Lal hwnahalo as of tam dam apa'Md in the lrrNnsbw nofm.
9.4 Tout DesbrL:Wm Noewwtotwslnp any tow pnvWim as ,I a Premium ToOM Dasi udlon occum Fos Lasse Wmd Wmhaft
w days Ia6moirg much Des huceon. tf ter drnags or dessh - was ca red by Im pees neglgrnm or rARhd rnismtlua of Lassos.Lesser rid
have be right fo mm%w Lesaofs dernpes horn Lases,aveal s ptvyeted in Paragraph e.8.
9.5 0emd9m Now End of Tmrua_ It at any Far during 6a tom(8 manta of O b Lase has a derne0e nor hdidt I'm rnst b repair
esamads rare trna>rYs Bare RornL Nralr a rhol n bntnrmd Lass,lesser may rrmkwee hto Lore.elfcave 60 days taloranp Oa doss of wnryrra of
thrdh Overage by p s rattle lerrrhinmOorh no&x to Leamm elhln JO OOye MMf M coat a Oft7Y►arrae d auft drape. MWWttMwdng M
1aepMhp,f Lessee M Ito Ornm No an uernsmoM option b Wwd t*Leto or to prchame to PtenWmes,ttmn Lessee may Premnve this Law by.
(9)eh+■ 1 mach optian and(b)pnovidb L—vA h may ahalmpa In kw rave premeds(or edoquMe arnYrtce ftweof)needed to men M
repairs an or bdae M earlier of(Q M daft reed Is ID days anw Losaet^s r of Lased wrlttsn notice pupdrtng to Iwmkww to leas,at(n
Una dry prior to M dale upon~wdh option*p . I Lams dry eieraftms midi option durtnp such period ad Provides Lessor west krds(or
adequais assurance tweaf)be 03W may fcrta0e in lrvm a Proteoda,Loam she,at Lawas's camwdaty remrasabls lMerw.repair much
gape as soon as nworoby po"bis mad tea Lars fmI oosbea n kl Iw'cm and bmaCi. f Lam"less he saris such Opbn one ptrsidl such
fund+or ssuarce firs r such pwcd.ran Fm Lass+that Wm We an to Ode ap@cV*d n to Wrnkatbn rnoI and Leases's+peon dhal be
afkgrtotrd.
96 Aboammerf of Rank Leaus's RsrerodYm.
is)ADafsrtarL In the Mast d Preenisaa Partial Dora"or Prerniees Total Des>rweion or a Hazardous SLatrxe Cordlson for
r1Yah Lessee a red respa aphe trsir eye Late,IV ROM perable by Ledeos for to period regarsd lot to spi.rarrd4d..t or rvaeryarh of mesh
MrwW ahml bs mowed n preporllon to fw dWw 10 edddt Lwawt we of tw Pry was a hVeied,but net 10 Owned tw proceeds recwmd tan
Use Redd VMas 1narNhoe A6 odw obfigaams of Leas twsurrder fW be pwtormed by Laws.rd leverets no liability for ram such
drrwpe.dazaruch n,srrrdu6onr repair or restoration anDW as pnsadod hwun.
(b)Rwred" d Lauer to atfgsled to repair or rmom fa Pwnie s and cos net enerwrmnm,in a subbLen d red m*mr&)g r
Pap[t Or 11
PtRL"
92001-AIR COMMERCIAL WAL ESTATE ASSOCIATWN FORAM 6TW1644014E �
weir.Mon"'soli'a res"Wel"wn Wihih 90 days after suC1 Dbhgmdw"acme.Lessee may,at arty one ph(to the cornmence rnert at turn repair or
"MIOr brh,owe uattan notice b Lessor and to any Landers df he*h Lessee+w octal nabcs,of L rises•&e+ectior,10 Wr*UU Na Lease on a dole
not less than 60 day i folyoatn9 the ghvg of such rwuca H Less"gives such notice and such spat or restoration Is nor co rnwratd etthat 30 days
Ihar law.In Lame shej is mrkWo u of er date specified In good notes. If to repair or festraton is canrnencea Voln a"30 dips,Ws Lease
shut continua n kd force end disci. Tormrence'MW moan etrwr tls ummnritlonsl authorization of Una Weparebon of the requited plans,or the
bapkurq Of to aced wort oh the Premiss,vAtchtrver f►>i ocan.
9.7 Twmkhato n;Advance Pirrnonta Upon larmnabon of d*Lease prsuwf to Plarspaph 61(g)a Paragraph 9.an equitable
ad)ustrrw rs stnef Ge made hbncern n9 advrrca Bate Heal and arty bllrer ar?rnc�e psyrrherts made Dy Lnsea b Lessor. Lessor shwa,h eddieort rahna
to Lassa so mtwh of Lessee's Secray-*xzft we has not wan,ors nor twn r5%,Ww b lea,used by Lamar,
10, Rest Poperty Tans.
10.1 DeMtOw. As, harm,the isrm'Rod Property Taxes'ohW ndude arty form of asseaamert real aatals.9enerat special.
mdrrry m om.erdwwlf,w rental levy of tax(ocher tan Owilanwa,persand Fxwm or aslats hams):rriprawrrwr bond,ardi4x sores fee anpoaed
ugdn Or levied against any legal or equtafte hues!of Lessor In to promises or the Prcoed.Lassoes rtprt to other V=wm tterafrOM ardor Lesooes
bka.ras Of I►.atnq.by try authaay twwrng 91e*W or rKh- i poWer 11)tsoc and%two the hatch am generated srth Wwwxe to re elddnp aWrsaa
Kid acme the prooseft all gerterflW ere to be applied by 7w=V.muHy or mtw locat tssktp ouldwrey of a Frtackti ah ethic eltrih she Nwruses we
located. Red Prodedy Taxes curt also khciuds any tic.lee, " asselarrent or rnr>M,or any ncrease therein (I)imposed by reason of coons
occurrtrq wrung ere harm of Una Lease. IrUu*g bull not tanned to.a crunge in the owlertdrp of the Premises, ON(i)levied m assessed on
machr"or egraprherN preceded by Lassee to Lessee pursuShl to this Lease.
10 2 Payment of Texas. In addition Wb Baas RenL Lessee shad play to Lasoor in arnduad equal to the Real PMPWy Tax sistaknnt
Jive a1 leap 20 days pnot to the applicable delYnquency dafa. If try such installment ndl aver try pMod of une phi lu a after the expliatron or
I&F nation of tits Lease.Logue's share of Burn rutaimerd Shea be proraled In fw averll Lessee chits a late Burge mh try RPM playfT old.Los o
may Witrnals the current Real Prnoerty Taxes.and require that%A:h Uum be pad In scitancce to Lector by Lessee rnorltty In advance wth tie
Plynwd of she Base Rat. Such natty payrnents shell be w arrwut equal to the wrKmI t of the eatte ad Irufab wrt of less divided by the
mumbar of mar"remai'hinp before tln rntxth in wttlCh add baatklhort becomes datnVtMrt. VVthen the odsxar rrorrt of the applicable tax tic Is
known,the amoum of LA h equal man**B&mwwe peymwts shad be n*xlod as equrad to provide Uw kids headed to pay the applicable text It
tw arnaurt collected by Lnuine Is Ins lfwant to pay suds Rsd Property Tars worn due,Lesaae shall pay Lasser,upon derwd.such adddlunel awn
as in nocaawy. Advar"payntmts may be kmmwVW WEh onaw morwis of Lassa and"not bear insist. �n M oven[of a Breach by I state
in the perim-once of is o6tQatons—der sin Lease.nor,ry s cli advance peyr Tents may be reeled try Lessor as an additional Security Deposit
10.3 Joint Assessment U the arsrnaes am not sepsrasly assessed,Leasasl IWMV shad be an squsable proportion of the Real
Prapwty Tars hwr Y of the Wind and rnprovdrwrts included Wirth to tax pace!sasessed,such propatixh to lea uxxiusivOy darenni ad try Lesscx
hum Ne resge6w ou"Im ids asslprd in The assassoes work sleets or such other Wor"llson es may tie r monSOry avaial W
,0a4 Pirsorhal Property Torn. Lessee*W pay.prior to dainqu.ncy.Y taara assessed 69WW and levied wan Lessee CM nod
Ntarsrions, Lathy ku44borw,Trade Fbrhres,fir ishings,equlpmard avid Y praaW property,of Lessee. VAw Possible, Lessee shall ohae Its
Lessee Ovrwd Afteratbma rid LANy:nrtase urm. 'rode Fbdures,AmfaNrps.equlpnwrl and al other personal poperty to be assessed and bled
seperatety from the rod prop"of Lased. II arty of Lessee's said property OW be assessed vWh lessors red property,Lessee did pay Lessor Ne
lam ewrtxrauio to Lsxds property WIQ lri 10 days anw reQpl of■anew stokwrwd warp forth nor tames applicable b Lessalati property.
11. uttstm ant aervicM lessee era pay for 01 weer,on.heal lone Poww.lelep,one.Walsh deposall and oNw ww.s And MrAc s
supplied to the Pmmlcas,logethr will ary lams thereon. 1'arrr such aarvtes are not saparaWy meioed or based to Loses.Lessee that pay a
aaSaude p dportiorh,b W detarnhlhed M Lessor.d Y dlarpes IbkW mdwsd m baled. There stws be no settlement of rani and Lamar shelf not De
14164 n any rsapact vvfwtaoaw rib tie bade¢ .acppega,rtafrupnon or dtawrs%RUCs of any utility or Serowe me to rot,"'008,tang-P-.
brsakdow,atndert.rapak or other caw bayvW Lassoes reasonable cantral or h cooperation vlth govanenertal request OF directions.
12. AaNgrmwnt and SublaQkrp.
12.1 Lassoes Comsat Requ lad.
(a) Lessee chat not vakntanty or by opwtbon of low assign. hauler, rrnorl~ or encumber :coaacavey. '46619n w
aMignnwrt'I or sullel all orerry Dui of Logue's Itare37 in Ws Lease orrt the Pnerrlass vrthol Lassoes prof vnt'en wwr.gon1.
(b)Lhhless L essee Is a corpaMlon and Its stock Is prbidy traded on a rwflonal stride exchange.a change n hw croon d L«see
saaa constitute an sssign ent requiring conswL"he Ua+dar,on a cmuiane baah,of 25%or nora of the vwo ng u ,Lut of Lasses shY constitute a
Cuhpe in cordfol kw this purpose
;e)The involvement or Lessee or Its"nets in any transaction,use sales of transacts"(by way of mwyer, LOW, lacyultmcn.
fnancln9,ra nsier,leveraged buyout or otheram).Wwtw or not a band aesigrcrwrt or hypothecation of tta lease or Lessee's assets occurs.
Wfkc1 results or wl result In a reduction of the hial Waft of L oseee by an trout grawiler than 25%of ace Ifet Wort'l as a suss rep WiW al the
inns of the emnLon Of Uri Lease or at Na tone o1[The most resent assignment 10 vAsdh Lessor he oorwrded.or as d emu knmed4mry Drtdr to said
L•anection or trnsac0oris conektutkhp such fedumon,eWdnever was or is gaatw.chit be mnfderCd an assiphrtha.M of Nis loose to nahicr Lesaw
may wirhold as conserL ?ill Worth of Lassa""meth the not worth of Lessee(ol"i4inp a V puraisora)astabltstad under pWherally sccspbd
aocarrr q pdnnples.
(d)An suagnment or subletorn vMtwut crhsaht dui.ui Lassa'■option.be a Debult arobis after notice per Paragraph 13.1(c),w
a rwnarabte Oreact,"Whout tow raiwe"d any rotics and grad penod. If lessor elects to uest Pied unapproved&NWW--at or audkeahg as a
nbnarable Breach,Leow may ei)w(Z temhintale thins Laws,or(i)upon 30 days wdtlan nodes,rscm&"the me"Base Rent b 110%of the Base
Rwt then in affect. Further,In the evert of such Brracii rod rental ac*a neril.m the purchase puce of"option to prduse law Promises held by
Laws""be slA od to sinnim ah;usun.m to 110%of tie pfte p(edously in aned,and(f)Y mad and non4LWd rw"Al EdMthentil adeeuled
sing the remhander of ttw leas.tam,Ikat be nceased to 110%of the scheduled a*xW rern
1e)Lessee's remedy tar cry breach of Paragraph 12 1 by Lessor shot W armed to wmpe nalory dnhages WXVW nlwhcbve relef.
I Lessor may masonaW v U*W consent to a wnposed assignment or sable mng a Lessee Is in De4&,t at the time-asses is
requested. I1Lth1l��
GE
(9)Not"hatanWtg me brsgory,Will a do mnnts pkr Memnon,
oon of tw emno ,roe 20 aq el uae few or lass,to be used by�a'=
PA a Or IT
?e INfT1Al.>!
9=1-AIR COaiMERCIAL REAL ESTATE ASSOCIATION FORM STµ rLW 14E
perly vendor In oonnu tin wfh fa inrsaaWn of a vant*q madhne x peyphone MM not amullem a atbiWM.
122 Term wad CendUene App *Wo b Aselprnent end sub$*".
(a)Rag dim of LasaWn cower'.no uslQrfheM or wAlaf>tp oust ()be mffimdlvrm dltmt fe chhI; vroften su wbon by
war os&W a or wAMM of to ubpAorr of Lesson,under fit Levee.M tmlaass Lasses of ay obigaftu hsreutder,or(11)oar ti pd wy
`.billy of Leum fm fe parmwt of Rwt or for la pwiamw ce of any ofw obigmYrn to be petk nrhed by lasses.
(b) Laaaa mil soCapt Rare or pwlcn7unce d Leo wo neipatlorns mom any pram ofnr fun Leaams psrh6rq approval of
dtWpovW of an wsipr merit NWW a delay In the approval Or dsapprvvr of wao11 asafprrnarrt nor to sobsplrnce of Reni or pwlrnwho dW
cvashAl a w"W or set s of Laww's"b sardso As rwaadiea fer Lassw`s Defara or eaadn.
(e1 Leasoes consent to any asalpurrN or a1A0MV alW ra caneii to a conmeml to wry EA waLa t asson next or subisaft.
pi)In ter Wert of any DaWA or&each by Lasses,Laeaw my proceed dowdy spinal Lessee,wy prrla or anyo»else
vommue for ha perlomwnm d Lafse*'s obip born unify IN Law.IndtWing arty amagrve a sA/esses, vA*W bat edhalseng Lea60M1
rrnedies moanM efy other person or ttrury remprWAs tlwafor io Leamor,or wy seaaily,hid by Lessor.
(a)Each repuesf for conaert to an migfnnnenl or u0s"Mao be in Ong,a=ompwwd Ay fdommilon rmkvrt to Laewa't
Mtn I'mar n a b fe bhwr+a and opwollornl responsibility and spprop6aterm"of the proposed assigner or imAlaaee,rrtrdng tat not an to
dw inierhded here andlor recrind mod metlon d fa Prommis m,If any,Wgs#W wash■foe d tb00 as eapldrallon for Lommor`s mnWdwbV NW
moosanp said r*OANL Lessee awass b provide Laswr w&such IOw or ad0ionel IrfogromW ardkr doa+rerdebm a my be reasonably
MWOVlsd.(sea uao Pangrmph 36)
(f)Airy■ms*ws of,or KA M under,the Law shl,by rmesm d ebompaq wxh aaigmw'l•ahsatrq nm such wAbaee.or
wrbsr�hp nto poaaesefon of fns PTwnLm at"pm fim Nrrad,be darted b hrvs assumed was agreed to cost.. and=n*vih each was every
Ism.covenant.candann End obagmam haan b be observed or parfamad by Lasses&xIrV fa Impel of said aacprr mut a subraee,cave fun arch
obipwfaa as mrs,orrery to or woo t6whosl wash p Adwa DID-aaallarmw I r t A"Doo ho-Wadi Lroach has spedroahr oon"food no in rfmnp.
(g)Lessees consarf to my ftsWe+ww a o"eavhg altd not Yanefr to she assigrw or a blassaa any OPtbn granted to 7 e
on"Leaase by ills`.ease un&as such talcs.sped rcmy crnwted to by Laver In m— (Sea Paagraph 301)
12.3 Additions!Terms and Conditions App5cable as iublsltI -. T1r k4modi g terms sued oonnflorn sir apply b any wbietng by
Laws*of of or any part of fx Phhwnaae and chap lire dawrDid rhdaeed in so a blummem under fa Lam"whotm or not auuprmsiy i=qx r*vd swill
(a)Lasses hwmby assigns and nmfars b Lear M of Leaaaeti a*0 n of Rant WAMW on wy m"amme.and Lessor may
called sash Rant rd apply sum towed Lesae'a atrpriau w%W eta Lana;prodded,homwm.set UFO a Bloom err•oohs In she perionr4w m
of L*u&Wa obigaeons.Lesese mey cried Bald Rat in as evert M.t fa arttovt coliwied by Leaar==mends ILemloWs fah ahbtandrg obliVaiav
wy wrah twos Mall be refunded to Lwsw&Lasso WW not.by reason of to broWng or any m9mVwrEt d oboe Kbissae.nor by realm Of Me
cdecum of Racy be deemed atilt b the sibiesses tor,any lakae of Laewe to palish.wW cmhWy will wry of Lassels obigsboru b ouch
subresses. Lowe hereby Mrw oca*scAl rtzas mrd draws eny such wAssesae.Won rnoept of a wMw+nobs lrom Lessor Mating f l a Breach
clan In the pa/ormwhce of Lease's obaplbrn ud w M Lew.to pry 10 laser r Rwd dos rW to b*cw%f w WOW Ne Kamm. S.eresaee
era rely vgw any pick norio Morn Lessor and Mail py as Rea b Laasr%11hrA any milgedw or right b nghim as b Y~W w.vh Breech.yen.
mtWthefendng any dakn lam Lasses,haft rnrewy.
lb)In f»wet of a&satin by Losses.Leum may.al p&spoon,ngris aA&sfee to MOM to Laear,in aftdn event Lessor reed
vhdwbes eu abagefore of M wAhwar wider wrdh ambles"saw DID am of fa wavdss d mW opow ho m eapkaabon of such wtsasso;pl--d.
hovnwr.Lessor"rot be Itaba hr any IawOald ran&or mew"depod Paid by euel ate4amee to Emil wAieaaw Or for eny pro DeasAs a
Breeches of wain ribiessor.
ic)Any mall or rmgtlrhg fa manaant of the K"esmor under a a MUM tied also rap.rfra the I w&M of Los"
(d)No uA%ima a anal Arrlrre assign or mbW as or wy pat of to frrwrame nitrous Lassoes pnor yeah wrwrY
(a)Lessor Mal delver a oopy of ary nalsm d DsfaA or&mach by lessee to the sub&ssse,vt ehd have fv right to an M
DafsA d Lasses~the grace paled,If any.mpecAmd In arch mica. The wE&osse 00 Mrs a Ape of nenbxssnwt and cMW than eras
agaW Lessee for shy such Defl uas namd by to mtkames.
11 Dofwtt Bread„Runedlma.
13.1 Dafwtt;Brach. A-Detsu-b d - a a taikn by fa Leave to coagty miln or pedomh any of the term.oovanuka.
cmiAmr a r tdAme and R.eg ulwkro urdw lids Loom A'Brmseh'y dewed as as o ommerm of one or mere Of M foiri>Q Dersa.and M
4in of Lase*ban wrdh Da(a*wren any mpp6c"grace period:
(a)The abwdawnwt of 11a Prwniea; or the wecafn0 of the Pmriaas v,►out porting a CwrvwusiY Memo shim level Of
max" or Wwm the mvmmge of We property h&Kmnce drsalbed h Paragraph f 3 a Jeopmdred as a rm L&twoof,or wiuts providing raesorhahb
assurances to mrwnce po&rx1a1 vandabsm.
(b)The 4iie o1 Leaves b meta any peymwt or Rat or ay Sacs"Dpoea regLm so be ands by lase@ hereuldw,wnarm
to Lear Or to a durd party,were due.IO provAds reasonable nKtw1O of h"W"Of wally bond,Or No ill wy obligation hanfsf ate Leaas wttrh
wiisnam or frwiam 1k or prop". dun nx h feiaa owtkaras for a period *1 3 4raa dare kdoo*np volition notice to Leaser, THE
ACCEPTAN E BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SEC(RfTY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF
LESSOR'S RIGHTS,INCLUIOLNG LESSOFr5 RIOfT TO RECOVER POSSE35ION Of The:PREMISES.
(c)TM few+„ of Losses to At"Lessor mWor as apama access to the PWrtees r fa mmntawn of male,ad or was
mnafsAkq pubic a primal•ntunce.rasa an ODOM advRy an fa Pharisee by LOSS".sews-rah e010n9 Canama fof a pentad d 3 brswss dos
k&wq w irlen runts to Leases.
(n The fire by Lassa In prOJtie(q rsaeerrtse waten evldahae of mmpiwm wash Applicable RewArements.Cal fa worse
oxaacb, (n the rnUsakx of or hnwOhorind "zign rrrt or wA&mng, M an EsaWpal Cer>rkm& or Manual otalmhwts. (v) a rmwsabd
elwritaraL(rl)e.;lrroa cnrhnrianp any VuwrKy wWw CsArr+dr,(w)any doom"rmgtrsfed uOr Prmynpah 42.(mill)Ruled nobty die
Meat(MSDS).or(K wry whsr doanrrtaaon r aearnefon vltah Loom my rwmmtty rmgtan d Lsaw urdw fa-eras d N&Lesse.sawn
any wash kaue condmA s for a prod of 10 dye baoakng am lim. ash I is Lesaes.
(e)A De"by lease*as fo av berms,owenarts,0a 111110 a or Wovialons of this Lease,or of the nAms adopted wdw Paagraph
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Exhibit E
DEVELOPMENT AGREEMENT
DOC# 2020-0429783
09/11/2020 03:59 PM Fees: $0.00
Page 1 of 29
Recorded in Official Records
RECORDING REQUESTED BY County of Riverside
AND WHEN RECORDED MAIL TO: Peter Aldana
Assessor-County Clerk-Recorder
City of Lake Elsinore
130 South Main Street "This document was electronically submitted
Elsinore CA 92530 to the County of Riverside for recording—
Lake + Receipted by:KAREN#277
Attn: City Clerk
(Space Above Line For Recorder's Use Only)
(Exempt from Recording Fees Per Gov. Code § 27383)
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE
CITY OF LAKE ELSINORE
AND
MEDCARE FARMS 2.0, LLC
Development Agmt-Medcare Farms 2.0,LLC 111218.docx
DOC#2020-0429783 Page 2 of 29
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
(Space Above Line For Recorder's Use Only)
(Exempt from Recording Fees Per Gov. Code § 27383)
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE
CITY OF LAKE ELSINORE
AND
MEDCARE FARMS 2.0, LLC
Development Agmt-Medcare Fauns 2.0,LLC 111218.docx
DOC#2020-0429783 Page 3 of 29
DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND MEDCARE FARMS 2.0,LLC
This Development Agreement ("Agreement"), dated for identification only as of
December 1, 2018, is made by and between the City of Lake Elsinore, a California municipal
corporation ("City"), and Medcare Farms 2.0, LLC, a California limited liability company
("Developer"). This Agreement shall take effect on the "Effective Date," as this term is hereafter
defined. City and Developer may each be referred to herein individually as a "Party" or
collectively as the"Parties."
RECITALS
A. In 1996, the California Legislature approved Proposition 215, also known as the
Compassionate Use Act ("CUA"), which was codified under Health and Safety Code section
11262.5 et sec., and was intended to enable persons in need of medical marijuana for specified
medical purposes, such as cancer, anorexia,AIDS, chronic pain, glaucoma and arthritis, to obtain
and use marijuana under limited circumstances and where recommended by a physician. The
CUA provides that"nothing in this section shall be construed or supersede legislation prohibiting
persons from engaging in conduct that endangers others, or to condone the diversion of
marijuana for non-medical purposes."
B. In 2004, the California Legislature enacted the Medical Marijuana Program Act
(Health & Saf. Code, § 11362.7 et seq.) ("MMP"), which clarified the scope of the CUA, created
a state-approved voluntary medical marijuana identification card program, and authorized cities
to adopt and enforce rules and regulations consistent with the MMP. Assembly Bill 2650 (2010)
and Assembly Bill 1300 (2011) amended the MMP to expressly recognize the authority of
counties and cities to "[a]dopt local ordinances that regulate the location, operation, or
establishment of a medical marijuana cooperative or collective" and to civilly and criminally
enforce such ordinances.
C. In September 2015, the California State Legislature enacted, and Governor Brown
signed into law three bills—Assembly Bill 243, Assembly Bill 266, and Senate Bill 643 —which
together comprise the Medical Marijuana Regulation and Safety Act (the "MMRSA"). The
MMRSA created a comprehensive dual state licensing system for the cultivation, manufacture,
retail, sale, transport, distribution, delivery, and testing of medical cannabis.
D. The MMRSA was renamed the Medical Cannabis Regulation and Safety Act(the
"MCRSA"), under Senate Bill 837 in June 2016, which also made included substantive changes
to the applicable state laws, which affect the various state agencies involved in regulating
cannabis businesses as well as potential licensees.
E. On November 8, 2016, the Control, Regulate, and Tax Adult Use of Marijuana
Act ("AUMA") was approved California voters as Proposition 64 and became effective on
November 9, 2016, pursuant to the California Constitution (Cal. Const., art. II, § 10(a).).
Proposition 64 legalized the nonmedical use of cannabis by persons 21 years of age and over,
• and the personal cultivation of up to six (6)cannabis plants.
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DOC#2020-0429783 Page 4 of 29
1 F. AUMA also created a state regulatory and licensing system governing the
commercial cultivation, testing, and distribution of nonmedical cannabis, and the manufacturing
of nonmedical cannabis products.
G. On June 27, 2017, Governor Brown signed the Legislature-approved Senate Bill
94. Senate Bill 94 combined elements of the MCRSA and AUMA to establish a streamlined
singular regulatory and licensing structure for both medical and nonmedical cannabis activities.
The new consolidated provisions under Senate Bill 94 is now known as the Medicinal and Adult-
Use Cannabis Regulation and Safety Act ("MAUCRSA") to be governed by the California
Bureau of Cannabis Control. MAUCRSA refers to medical cannabis as "medicinal cannabis"
and nonmedical/recreational cannabis as "adult-use cannabis."
H. On September 16, 2017, Governor Brown signed Assembly Bill 133 into law,
which provided cleanup and substantive changes to MAUCRSA, including the removal of the
requirement that licensed premises remain"separate and distinct" for each license type.
I. MAUCRSA grants local jurisdictions discretion over whether businesses engaged
in commercial cannabis activity may operate in a particular jurisdiction and, if authorized, where
within such jurisdiction.
J. On November 28, 2017, the City Council approved Ordinance No. 1382
amending the Lake Elsinore Municipal Code ("LEMC") Chapter 17.156 to: (i) require all
cannabis businesses in the City to have a State license and a City cannabis business permit; (ii)
establish procedures for the review and issuance of a cannabis business permit; (iii) to allow
cannabis dispensaries, cannabis distribution, indoor cannabis cultivation, cannabis manufacturing
and cannabis testing laboratories in M-1 (limited manufacturing) and M-2 (general
manufacturing)zoning districts; and (iv) establish regulations related to such activities.
K. Ordinance No. 1382 allows persons to engage in a permissible "Cannabis
Business" upon the City's issuance of a "Cannabis Business Permit," which requires City
approval of a conditional use permit, development agreement, and other applicable approvals.
L. Developer has an equitable interest in that certain real property located at 29395
Hunco Way, Building A, in the City of Lake Elsinore, County of Riverside, State of California,
Assessor's Parcel Number 377-120-043, which is within a manufacturing zoning district (the
"Site").
M. The Site is more particularly described in the legal description attached hereto as
Exhibit A, the Site Plan is attached hereto as Exhibit B, and the Floor Plan is attached hereto as
Exhibit C.
N. Developer affirms that it has an equitable interest in the Site, evidenced in writing
with the owner of the Site, Pasadena Industrial Park, LLC (the "Property Owner"), for the
purpose of carving out the Project.
O. The Property Owner has provided notarized written consent to the terms of this
• Agreement and the recordation thereof, attached hereto as Exhibit D.
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DOC#2020-0429783 Page 5 of 29
P. Developer proposes to improve, develop, and use the Site for a Cannabis Business
(as defined below), in accordance with California Cannabis Laws (as defined below) and the
LEMC, as each may be amended from time to time (the"Project").
Q. To strengthen the public planning process, encourage private participation in
comprehensive planning and reduce the economic risk of development, the California
Legislature adopted Government Code section 65864 et seq. (the "Development Agreement
Statute"), which authorizes the City and an individual with an interest in real property to enter
into a development agreement that establishes certain development rights in real property that is
subject to a development agreement application.
R. Consistent with the requirements of the Development Agreement Statute, the City
adopted LEMC, Chapter 19.12 ("Development Agreement Ordinance") authorizing the use of
and establishing the procedures and requirements for the consideration of development
agreements within the City.
S. LEMC, Section 19.12.010 requires submittal of an application along with
information and supporting data as requested by the Director of Community Development for
consideration of any development agreement. Developer has satisfied this requirement.
T. On November 20, 2018, the City of Lake Elsinore Planning Commission held a
duly noticed public hearing to consider Owner's application for this Agreement and
recommended to the City Council approval of this Agreement.
U. On December 11, 2018, the City Council held a duly noticed public hearing to
consider this Agreement and found and determined that this Agreement: (a) is consistent with the
objectives, policies, general land uses and programs specified in the City's General Plan and any
applicable specific plan; (b) is compatible with the uses authorized in, and the regulations
prescribed for the Site and the surrounding area and will not adversely affect the orderly
development of the Site or the preservation of property values; (c) is in conformity with public
convenience, general welfare and good land use practices; (d) will have an overall positive effect
on the health, safety and welfare of the residents of and visitors to the City; and (e) constitutes a
lawful, present exercise of the City's police power and authority under the Development
Agreement Statute and Development Agreement Ordinance.
V. Based on the findings set forth in Section 1.1, the City Council entered into this
Agreement pursuant to and in compliance with the requirements of the Development Agreement
Statute and the Development Agreement Ordinance; and did therefore, in approving this
Agreement introduc for first reading Ordinance No. 201�'L� 05 (the "Enabling Ordinance"). On
�
a.n"m y , 201,9, the City Council conducted the second reading of the Enabling Ordinance
thereby approving this Agreement, to become effective thirty (30) days after the adoption
thereof.
•
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DOC#2020-0429783 Page 6 of 29
NOW, THEREFORE, in consideration of the mutual terms, obligations, promises,
covenants and conditions contained herein and for other valuable consideration, the sufficiency
of which is hereby acknowledged, the Parties, and each of them, agree as follows:
AGREEMENT
ARTICLE 1.
GENERAL PROVISIONS
1.1. Findings. City hereby finds and determines that entering into this Agreement
furthers the public health, safety, and general welfare and is consistent with the City's General
Plan.
1.2. Recitals. The Recitals above are true and correct and are hereby incorporated into
and made a part of this Agreement. In the event of any inconsistency between the Recitals and
the provisions of Articles 1 through 9 of this Agreement, the provisions of Articles 1 through 9
shall prevail.
1.3. Exhibits. The following "Exhibits" are attached to and incorporated into this
Agreement:
Exhibit A Legal Description
Exhibit B Site Plan
Exhibit C Floor Plan
Exhibit D Property Owner Consent
1.4. Definitions. All following initially-capitalized words, terms, and phrases have the
meanings assigned to them below, unless the context indicates otherwise.
"Additional City Approvals" means all ministerial and discretionary permits,
licenses, or other similar entitlements that must be secured by the Developer in order to develop
the Project on the Site, in addition to the Conditional Use Permit and the Cannabis Business
Permit.
"Additional Insureds"has the meaning set forth in Section 5.1.
"Agreement" means this Development Agreement and all Exhibits attached
hereto.
"AUMA"has the meaning as set forth in the Recitals, above.
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DOC#2020-0429783 Page 7 of 29
"California Building Standards Codes"means the California Building Code, as
amended from time to time, in Part 2,Volumes 1 and 2, as part of Title 24 of the California Code
of Regulations, as may be adopted by the LEMC.
"California Cannabis Laws" includes AUMA, MAUCRSA, CUA, the MMP,
and the regulations adopted and promulgated by the State Licensing Authorities pursuant to such
laws, as such laws and regulations may be amended from time to time.
"Cannabis" means all parts,of the plant Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude
or purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the
separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include
the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the
mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. For the purpose of this division, "cannabis" does not
mean"industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. Cannabis
and the term"marijuana"may be used interchangeably.
"Cannabis Business" includes cultivation, possession, manufacture, processing,
storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis or a
cannabis product that requires a state license pursuant to MAUCRSA.
"Cannabis Business Permit" means the City permit established and authorized
by LEMC, Section 17.156.040, authorizing permissible Cannabis Business activity which can
only be issued upon City approval of a conditional use permit, development agreement, and
Additional City Approvals for each proposed Cannabis Business activity project.
"City"means the City of Lake Elsinore, a municipal corporation.
"City Council" means the City of Lake Elsinore City Council as described in
LEMC, Chapter 2.08.
"City Manager" means the City Manager of the City of Lake Elsinore, or
designee, as described in LEMC, Chapter 2.04.
"Community Benefits" has the meaning set forth in Section 4.1 of this
Agreement.
"Community Benefits Fees" has the meaning set forth in Section 4.2 of this
Agreement.
"Conditional Use Permit" means a conditional use permit issued by the City to
Developer pertaining to Developer's development of the Project, pursuant to LEMC, Chapter
17.168. In the event that the Conditional Use Permit may not have been issued to the Developer
as of the Effective Date, the City hereby reserves its discretion under the police power to
approve, conditionally approve, or deny the issuance of the Conditional Use Permit.
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DOC#2020-0429783 Page 8 of 29
"CUA"has the meaning as set forth in the Recitals, above.
"Developer" means Medcare Farms 2.0, LLC, a California limited liability
company.
"Development Agreement Ordinance" has the meaning as set forth in the
Recitals, above.
"Development Agreement Statute" has the meaning as set forth in the Recitals,
above.
"Development Regulations"means the following regulations as they are in effect
as of the Effective Date and to the extent they govern or regulate the development of the Site, but
excluding any amendment or modification to the Development Regulations adopted, approved,
or imposed after the Effective Date that impairs or restricts Developer's rights set forth in this
Agreement, unless such amendment or modification is expressly authorized by this Agreement
or is agreed to by Developer in writing: the City's General Plan; any existing Specific Plan that
include the Site, and,to the extent not expressly superseded by this Agreement, all other land use
and subdivision regulations governing the permitted uses, density and intensity of use for
obtaining required City permits and approvals for development, and similar matters that may
apply to development of the Project on the Site during the Term of this Agreement that are set
forth in Title 16 of the LEMC (Subdivisions), Title 17 of the LEMC (Zoning), and Title 19 of the
LEMC (Development). Notwithstanding the foregoing, the term "Development Regulations," as
used herein, does not include any City ordinance, resolution, code, rule, regulation or official
policy governing any of the following: (i) the conduct of businesses, professions, and
occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the
granting of encroachment permits and the conveyance of rights and interests which provide for
the use of or the entry upon public property; (v) the exercise of the power of eminent domain; or
(vi)the California Building Standards Codes.
"Effective Date"has the meaning as set forth in Section 1.6.
"Exhibits"has the meaning set forth in Section 1.3.
"Floor Area" means rentable interior floor area at the Site; rentable square
footage measured based on Building Owners and Managers Association International industrial
building standards.
"Marijuana" has the same meaning as cannabis and those terms may be used
interchangeably.
WAUCRSA"has the meaning as set forth in the Recitals, above.
"MCRSA"has the meaning as set forth in the Recitals, above.
"MMP"has the meaning as set forth in the Recitals, above.
"MMRSA"has the meaning as set forth in the Recitals, above.
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DOC#2020-0429783 Page 9 of 29
"Mortgage"has the meaning set forth in Article 6.
"Non-Payment Penalty"has the meaning set forth in Section 4.3.
"Notice of Non-Payment Penalty"has the meaning set forth in Section 4.3.
"Project"has the meaning as set forth in the Recitals, above.
"Property Owner"means Pasadena Industrial Park, LLC.
"Regulatory Fees" mean charges owed by the Developer to the City for the
City's costs incurred in processing applications related to the Project, administering its cannabis-
related ordinance with regard to the Project, and monitoring legal compliance of the Project on
the Site, including,but not limited to building and safety-related inspections by the City.
"Site"has the meaning as set forth in the Recitals,above.
"State Cannabis License" means a license, including a temporary license, to
conduct Cannabis Business activities issued by a State Licensing Authority to Developer for the
Development of the Project on the Site.
"State Licensing Authority" means the state agency responsible for the
issuance, renewal, or reinstatement of State Cannabis Licenses, or the state agency
authorized to take disciplinary action against a business licensed under the California
Cannabis Laws.
"Term"has the meaning described in Section 1.7.
"Term Commencement Date"has the meaning described in Section 1.7.
1.5. Project is a Private Undertaking. The Parties agree that the Project is a private
development and that City has no interest therein, except as authorized in the exercise of its
governmental functions. City shall not for any purpose be considered an agent of Developer or
the Project.
1.6. Effective Date of Agreement. This Agreement shall become effective (the
"Effective Date") upon the date when all of the following conditions have been satisfied: (i) the
City ordinance approving this Agreement becomes effective; (ii) this Agreement has been fully
executed by the Parties; and (iii) the Developer have delivered evidence of insurance coverage in
favor of the City as set forth in Article 5 of this Agreement.
1.7. Term. The term of this Agreement (the "Term") shall be twenty (20) years
commencing from the issuance of the Cannabis Business License to Developer for the Project
(the "Term Commencement Date"). Nothing in this Section 1.7 shall prohibit or otherwise
restrict the termination of this Agreement in accordance with Section 1.8.
1.8. Termination. This Agreement shall terminate upon the occurrence of any of the
following events:
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DOC#2020-0429783 Page 10 of 29
a. the expiration of the Term;
b. the Developer no longer has a possessory, legal or other equitable interest
in the Site;
C. the Developer has ceased all operations related to the Project on the Site
for a period of one year or more;
d. mutual written consent of the Parties;
e. abandonment of the Developer's Conditional Use Permit pursuant to
LEMC, Section 17.168.080 including the failure of the Developer to commence operation of the
Project on the Site within the time presented following the approval of the Conditional Use
Permit;
f. suspension or revocation of Developer's Conditional Use Permit pursuant
to LEMC, Section 17.168.110;
g. following the Term Commencement Date, the failure to have a valid
Cannabis Business Permit for the Project;
h. following the Term Commencement Date, the failure to have a valid
Developer's State Cannabis Permit for the Project; or
i. unauthorized assignment of interest of the Developer in the Project or in
the Site pursuant to Section 9.1 of this Agreement.
The rights and obligations of the Parties set forth in Sections 4.2, 4.3, 4.4, 5.4, 9.2, 9.3,
9.4, and 9.6 of this Agreement and any right or obligation of the Parties in this Agreement,which
by its express terms or nature and context is intended to survive termination of this Agreement,
will survive any such termination.
1.9. Operating Memoranda; Amendment of Agreement.
a. Operating Memoranda. The provisions of this Agreement require a close
degree of cooperation between the City and the Developer. The Development of the Developer
Property may demonstrate that clarifications to this Agreement and the Existing Land Use
Regulations are appropriate with respect to the details of performance of the City and the
Developer. To the extent allowable by law, the Developer shall retain a certain degree of
flexibility as provided herein with respect to all matters, items and provisions covered in general
under this Agreement, except for those which relate to the (i) term; (ii) permitted uses; or (iii)
density or intensity of use. When and if the Developer finds it necessary or appropriate to make
changes, adjustments or clarifications to matters, items or provisions not enumerated in (i)
through (iii) above, the Parties shall effectuate such changes, adjustments or clarifications
through operating memoranda (the "Operating Memoranda") approved by the Parties in writing
which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an
amendment to this Agreement but mere ministerial clarifications; therefore public notices and
hearings shall not be required. The City Manager shall be authorized, upon consultation with,
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DOC#2020-0429783 Page 11 of 29
and approval of, the Developer, to determine whether a requested clarification may be
effectuated pursuant to this Section or whether the requested clarification is of such character to
constitute an amendment to this Agreement which requires compliance with the provisions of
Section 1.9(b)below.
b. Amendment. Subject to the notice and hearing requirements of the
Government Code, this Agreement may be modified or amended from time to time only with the
written consent of the Developer and the City or their successors and assigns in accordance with
the provisions of the Development Agreement Ordinance and the Development Agreement
Statute.
1.10. Fees. Developer agrees to pay all Regulatory Fees, Community Benefits Fee, and
any other applicable fees to the City related to Developer's development and operation of the
Project on the Site.
ARTICLE 2.
DEVELOPMENT OF THE PROPERTY
2.1. Intent. Developer has expended and will continue to expend substantial amounts
of time and money planning and preparing for development of the Project. Developer represents
and City acknowledges that Developer would not make these expenditures without this
Agreement, and that Developer is and will be making these expenditures in reasonable reliance
upon its vested rights to develop the Project as set forth in this Agreement.
2.2. Vested Right to Develop. During the Term, Developer shall have the vested
right to develop the Project on the Site, in accordance with the Agreement, the Conditional Use
Permit, Additional City Approvals if any,the Cannabis Business Permit, the City's Development
Regulations.
2.3. Permitted Uses and Operational Requirements. Developer shall be permitted
to develop, construct, and use the Site to carry out the Project, consistent with California
Cannabis Laws, this Agreement, the Conditional Use Permit, Additional City Approvals, the
Cannabis Business Permit, the LEMC (as may be amended except for the Development
Regulations), and the State Cannabis License.
2.4. Additional Entitlements, Approvals, and Permits. Successful implementation
of the Project may require the Developer to obtain additional approvals and permits from City
and other local and state agencies. In connection with the consideration and issuance of any such
Additional City Approval which is not ministerial in nature, the City reserves its discretion under
the police power to approve, conditionally approve, or deny the issuance of each City Additional
Approval.
2.5. Conditional Use Permit. Pursuant to LEMC, Chapter 19.12, Developer shall not
engage in the permitted uses set forth above pertaining to the Project on the Site without first
obtaining the Conditional Use Permit allowing for the operating of a "cannabis business" (as
defined in Section 17.156.030 of the LEMC).
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DOC#2020-0429783 Page 12 of 29
1 2.6. Cannabis Business Permit. Pursuant to LEMC, Section 17.156.040, no person
may engage in a"cannabis business"in the City without obtaining a Cannabis Business Permit.
2.7. State Cannabis License. Pursuant to California Cannabis Laws, Developer shall
not engage in the permitted uses set forth above pertaining to the Project on the Site without first
obtaining a State Cannabis License necessary to conduct the type of Cannabis Business on the
Site as authorized by the Cannabis Business Permit.
ARTICLE 3.
APPLICABLE RULES, REGULATIONS, AND OFFICIAL POLICIES
3.1. Rules on Permitted Uses. Unless otherwise provided in this Agreement, the
City's ordinances, resolutions, rules, regulations, and official policies governing the permitted
uses of the Site and the maximum height, bulk, and size of proposed buildings related to the
Project on the Site shall be those in force and effect at the time of the City's issuance of the
Cannabis Business Permit for the development of the Project at the Site.
3.2. Rules on Design and Construction. Unless otherwise provided in this
Agreement, the ordinances, resolutions, rules, regulations, and official policies governing the
design, improvement, and construction standards and specifications applicable to the Project
shall be those in force and effect at the time of the City's issuance of the Cannabis Business
Permit for the development of the Project at the Site.
3.3. Uniform Codes Applicable. Unless otherwise provided in this Agreement, the
Project shall be improved and constructed in accordance with the provisions of the California
Building Standards Codes in effect at the time as of the time of the City's consideration of
approval of the relevant permit sought by Developer for the Project.
3.4. Changes Mandated by Federal or State Law. The Site and Project shall be
subject to subsequently enacted state or federal laws or regulations that may preempt the LEMC,
or mandate the adoption or amendment of local regulations, or are in conflict with this
Agreement or local rules or guidelines associated with City's Cannabis Uses (LEMC, Ch.
17.156) or Cannabis Business Permit. As provided in section 65869.5 of the Development
Agreement Statute, in the event state or federal laws or regulations enacted after the Effective
Date prevent or preclude compliance with one or more provisions of this Agreement, such
provisions shall be modified or suspended as may be necessary to comply with such state or
federal laws or regulations. Upon discovery of a subsequently enacted federal or state law
meeting the requirements of this Section, City or Developer shall provide the other Party with
written notice of the state or federal law or regulation, and a written statement of the conflicts
thereby raised with the provisions of the LEMC or this Agreement. Promptly thereafter, City and
Developer shall meet and confer in good faith in a reasonable attempt to modify this Agreement,
as necessary, to comply with such federal or state law or regulation provided City shall not be
obligated to agree to any modification materially increasing its obligations or materially
adversely affecting its rights and benefits hereunder. In such discussions, City and Developer
will attempt to preserve the terms of this Agreement and the rights of Developer derived from
this Agreement to the maximum feasible extent while resolving the conflict. If City, in its
• judgment, determines it necessary to modify this Agreement to address such conflict, City shall
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DOC#2020-0429783 Page 13 of 29
have the right and responsibility to do so, and shall not have any liability to Developer for doing
so or be considered in breach or default of this Agreement. City also agrees to process, in
accordance with the provisions of this Agreement, Developer's proposed changes to the Project
that are necessary to comply with such federal or state law and that such proposed changes shall
be conclusively deemed to be consistent with this Agreement without further need for any
amendment to this Agreement.
3.5. Health and Safety Emergencies. In the event that any future public health and
safety emergencies arise,with respect to the development contemplated by this Agreement, City
agrees that it shall attempt, if reasonably possible as determined by City in its discretion, to
address such emergency in a way that does not have a material adverse impact on the Project.
3.6. Reservation of Authority. Any other provision of this Agreement to the contrary
notwithstanding, the development of the Project shall be subject to new or modified ordinances,
resolutions, rules, regulations, and official policies related to the following:
a. Regulatory Fees imposed on the Developer by the City, which are charged
by the City to cover its actual and reasonable expenses incurred in processing permits, licenses,
and other entitlements related to the Project, administering its cannabis-related ordinance with
regard to the Project, and monitoring legal compliance of the Project on the Site, including, but
not limited to building and safety-related inspections by the City;
b. Development impact fees or charges imposed by the City on and in
connection with a development or other similar fees or charges imposed by other governmental
entities regardless of whether the City is required to collect or assess such fees pursuant to
applicable laws (e.g., school district impact fees pursuant to Government Code Section 65995),
or general or special taxes and assessments.
C. Procedural regulations related to hearing bodies, petitions, applications,
notices, findings, records, hearings, reports, recommendations, appeals, and other similar
procedural matters; and
d. Regulations, including, but not limited to, the California Building
Standards Codes, necessary to protect the public health and safety so long as such regulations are
generally applicable and do not impose a severe and significant financial burden on the
Developer or materially delay the development or carrying out of the Project as contemplated in
this Agreement.
ARTICLE 4.
COMMUNITY BENEFITS FEE
4.1. Intent. The Parties acknowledge and agree that this Agreement confers
substantial private benefits on the Developer that will place significant burdens, including both
known costs and potential but currently unknown costs, on City infrastructure, services, and
neighborhoods and that the private benefits provided to the Developer should be balanced with
commensurate public benefits for the community ("Community Benefits"). Accordingly, City
and Developer recognize and agree that but for Developer's payments as provided herein, City
would not and could not approve use of the Site for the Project as provided by this Agreement.
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DOC#2020-0429783 Page 14 of 29
City's approval of this Agreement is in reliance upon and in consideration of Developer's
agreement to make the payments required hereunder.
4.2. Community Benefits Fee. In addition to Developer's obligation to pay the City
through its Regulatory Fees, Developer shall be obligated to provide Community Benefits as
follows, which shall be referred to as the "Community Benefits Fee":
a. Community Benefits Fee. Concurrent with the Term Commencement
Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to
the following fee schedule:
All Cannabis Business $18.00 per square foot of Floor Area
activities annually
Notwithstanding the foregoing, Developer may elect, on a one-time basis, to make payment of
the Community Benefit Fee due on the Term Commencement Date in two equal installments,the
first one-half installment to be made on the Term Commencement Date and the second one-half
installment to be due and payable on a date six(6) months from the Term Commencement Date.
b. Annual Increase. In order to account for the increasing cost of providing
City services, the Community Benefits Fee set forth in Section 4.2(a) shall be increased annually
commencing on each anniversary of the Term Commencement Date (each of which day shall be
referred to as an "Adjustment Date"). Each Adjustment Date shall be numbered in sequence
(e.g., First Adjustment Date, Second Adjustment Date, Third Adjustment Date, etc.). Each such
annual increase in the Community Benefits Fee shall be determined as follows:
Four percent (4%) of the amount of the Community Benefits Fee payable
immediately preceding such adjustment (For example and for illustration
purposes only, if Developer's Community Benefits Fee was $109,800
[$18.00 x 6,100 square feet of Floor Area] upon the initial issuance of a
Cannabis Business Permit on March 15, 2019, the Community Benefits
Fee due on the First Adjustment Date, that is, March 15, 2020, is the
product of $109,800 times 1..04, in which case the Community Benefits
Fee payable on the First Adjustment Date would be$114,192).
4.3. Penalty. If Developer fails to make a payment of the Community Benefits Fee, as
required by this Agreement, the City may impose a "Non-Payment Penalty." A Non- Payment
Penalty of five percent (5%) shall be applied to all past due Community Benefits Fees. The City
shall deliver to Developer a "Notice of Non-Payment Penalty." Payment of the Non- Payment
Penalty and past due Community Benefits Fees shall be in a single installment due on or before a
date fifteen (15) days following delivery of the Non-Payment Penalty.
4.4. Interest on Unpaid Non-Performance Penalty; Past Due Community Benefits
Fees. If Developer fails to pay the Non-Performance Penalty and all past due Community
Benefits Fees after City has delivered the Notice of Non-Performance Penalty, then, in addition
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DOC#2020-0429783 Page 15 of 29
to the principal amount of the Non-performance Penalty and past due Community Benefit Fees,
Developer shall pay City interest at the rate of eighteen percent (18%) per annum, computed on
the principal amount of the Non-Performance Penalty and past due Community Benefit Fees,
from a date fifteen (15) days following delivery of the Notice of Non-performance Penalty.
Notwithstanding the foregoing provisions of this Section 4.4, in no event shall the rate of interest
payable by Developer exceed the maximum rate of interest permitted to be charged under
applicable law.
ARTICLE 5.
INSURANCE AND INDEMNIFICATION
5.1. General Liability Insurance. Developer shall maintain comprehensive general
liability insurance issued by a California admitted insurance courier whose Best Insurance Guide,
current edition insurance rating is not less than `B+(vii)" with a per-occurrence combined single
limit of not less than Two Million Dollars ($2,000,000) with a claim deduction not more than One
Hundred Thousand Dollars ($100,000) per claim. Such insurance policy shall name the City and
City's elected and appointed councils, boards, commissions, legislative bodies, officials,
employees, and representatives as "Additional Insureds" by endorsement with respect to the
performance of this Agreement and shall include either a severability of interest clause or cross-
liability endorsement and other customary and reasonable endorsements and provisions approved
by the City's risk manager.
5.2. Workers' Compensation Insurance. Developer shall maintain workers'
compensation insurance for all its employees employed at or on the Project. Developer shall
require each contractor and subcontractor working at or on the Project to provide workers'
compensation insurance for its respective employees. Developer indemnification of City set forth
in Section 5.4 of this Agreement shall apply to Developer's failure to maintain any such
insurance.
5.3. Evidence of Insurance. Evidence of the insurance in favor of the City required
under Section 5.1 shall be provided to the City as of the Effective Date. Thereafter no Cannabis
Business Permit for the Project shall be valid unless and until Developer furnishes satisfactory
evidence of the other insurance required in Article 5 of this Agreement. In each case,the evidence
of insurance provided to the City shall include satisfactory evidence that the insurance carrier
shall give the City at least fifteen (15) days' prior notice of the cancellation or reduction in
coverage of each policy of insurance required in Article 5 of this Agreement.
5.4. Indemnification. The Developer agrees to indemnify, defend with counsel
acceptable to City, and hold harmless the City and City's elected and appointed councils, boards,
commissions, legislative bodies, officials, employees, and representatives from any and all claims,
costs (including legal fees and costs), or liabilities of any kind arising out of or connected to any
act or omission of Developer or Developer's contractor, subcontractor, agent, or representative
related to its establishment or operation of the Project or arising out of or related to the approval
or issuance of any permit, license, or approval by the City for the Project, except to the extent
such claims, costs, and liabilities are caused by the sole negligence or willful misconduct of the
City. The Developer agrees that it shall be responsible for all costs incurred by the City in the
event of a third-party challenge related to such claims, costs, or liabilities.
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DOC#2020-0429783 Page 16 of 29
5.5. Failure to Indemnify. The Developer's failure to indemnify the City, when
required by this Agreement, shall constitute a material breach of this Agreement and of any
applicable Conditional Use Permit, Cannabis Business Permit, and Additional City Approvals,
which shall entitle the City to all remedies available under law, including, but not limited to,
specific performance and damages. Failure to indemnify shall constitute grounds upon which the
City may rescind its approval of any entitlement, permit, or license related to the Project, or any
portion thereof, and a waiver of Developer's right to file a claim, action, or proceeding against the
City and City's elected and appointed councils, boards, commissions, legislative bodies, officials,
employees, and representatives based upon the City's rescission or revocation of any applicable
Conditional Use Permit, Cannabis Business Permit, and Additional City Approvals, or City's
failure to defend any claim, action, or proceeding based upon Developer's failure to indemnify the
City.
5.6. Waiver of Damages; Referendum. Notwithstanding anything in this Agreement
to the contrary, the Parties acknowledge that City would not have entered into this Agreement had
it been exposed to liability for damages from the Developer and, therefore, the Developer hereby
waives all claims for damages against City for breach of this Agreement. The approvals
(including development agreements) must be approved by the City Council and that, under law,
the City Council's discretion to vote in any particular way may not be constrained by contract.
The Developer therefore waives all claims for damages against City in the event that this
Agreement or any Project approval is: (1) not approved by the City Council or(2) is approved by
the City Council,but with new changes,amendments, conditions, or deletions to which Developer
is opposed. Developer further acknowledges that, as an instrument which must be approved by
ordinance, a development agreement is subject to referendum; and that, under law, the City
Council's discretion to avoid a referendum by rescinding its approval of the underlying ordinance
may not be constrained by contract, and Developer waives all claims for damages against City in
this regard.
5.7. Bankruptcy. The obligations of this Agreement shall not be dischargeable in
bankruptcy.
ARTICLE 6.
MORTGAGEE PROTECTION
This Agreement, once executed and recorded, shall be superior and senior to any lien
placed upon the Site or any portion thereof following recording of this Agreement, including the
lien of any deed of trust or mortgage ("Mortgage"). Notwithstanding the foregoing, no breach
hereof shall defeat, render invalid, diminish, or impair the lien of any Mortgage made in good
faith and for value. This Agreement shall immediately be deemed in default and immediately
terminate upon the foreclosure or transfer of any interest in the Site or Project, whether by
operation of law or any other method of interest change or transfer,unless the City Manager has
authorized such change or transfer in advance, in writing.
•
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DOC#2020-0429783 Page 17 of 29
ARTICLE 7.
PERIODIC REVIEW
City shall review this Agreement ("Periodic Review") in accordance with the
Development Agreement Ordinance, including LEMC, Section 19.12.140 and the procedures set
forth in LEMC, Section 19.12.150. Notwithstanding the foregoing, the City's failure to review
the Developer's compliance with this Agreement, at least annually, will not constitute or be
asserted by either Party as a breach by the other Party.
ARTICLE 8.
DEFAULT
8.1. General Provisions. The failure of either Party to perform any obligation or duty
under this Agreement within the time required by this Agreement shall be a default and after the
giving of notice and the passage of the applicable amount of time, such a default shall constitute
an event of default.
8.2. Notice. The "Complaining Party" may not assert that an event of default has
occurred against the "Defaulting Party" unless the Complaining Party has first given written
notice to the Defaulting Party, specifying the nature of the default and the manner in which the
default may be cured, if known to the Complaining Party. Any failure or delay by the
Complaining Party in giving such notice shall not waive such default or waive any of the
Complaining Party's remedies.
8.3. Cure. The Defaulting Party shall have thirty (30) days from the receipt of notice
to cure the default except as provided in the next sentence. In the case of a monetary default
(e.g. failure to make the payments of fees required under this Ordinance), any such default must
be cured by the payment of the amount demanded within such thirty(30) day period. In the case
of non-monetary defaults, if the default cannot be reasonably cured within such time, the default
shall be deemed cured if.
a. The cure is commenced at the earliest practicable date following receipt
of notice;
b. The cure is diligently prosecuted to completion;
C. At the earliest practicable date (but in no event later than thirty (30) days
after receiving the notice of default), the Defaulting Party provides written notice to the
Complaining Party that the cure cannot be reasonably completed within such thirty (30) day
period; and
d. The default is cured at the earliest practicable date, but in no event later
than sixty(60) days after receipt of the first notice of default.
8.4. Remedies. If the Defaulting Party fails to cure a default in accordance with the
foregoing, an event of default shall be deemed to have occurred and the Complaining Party shall
have the right to seek all appropriate remedies, at law or in equity, including specific penalty or
termination of this Agreement without further or separate notice to the Defaulting Party.
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DOC#2020-0429783 Page 18 of 29
8.5. Estoppel Certificates.
a. City shall, upon not less than thirty (30) days prior written notice,
execute, acknowledge, and deliver to Developer, Developer's lender, potential investors, or
assignees an estoppel certificate in writing which certifies that this Agreement is in full force
and effect, that there are no breaches or defaults under the Agreement except as described in
such estoppel certificate, and that the Agreement has not been modified or terminated and is
enforceable in accordance with its terms and conditions.
b. The City may recover its actual and reasonable costs and attorneys' fees
in connection with the timely dealing of any such estoppel certificate, in an amount not to
exceed $2,500 per estoppel certificate.
ARTICLE 9.
OTHER GENERAL PROVISIONS
9.1. Assignment. The rights and obligations of Developer hereunder shall not be
assigned or transferred, except that on thirty (30) days written notice to City, Developer may
assign all or a portion of Developer's rights and obligations there under to any person or persons,
partnership or corporation who purchases all or a portion of Developer's right, title and interest
in the Site, or Project, provided such assignee or grantee assumes in writing each and every
obligation of Developer hereunder yet to be performed, and further provided that Developer
obtains the written consent of City to the assignment, which consent shall not be unreasonably
withheld. Notwithstanding the foregoing provision concerning the written consent of City, and
provided that the assignment is to an affiliate of Developer (an entity which is controlled by,
controls, or is under common control with, Developer), the City shall in such cases provide its
written consent provided that all other requirements of this Section 9.1 are satisfied. The notice
to City shall include the identity of any such assignee and a copy of the written assumption of the
assignor's obligations hereunder pertaining to the portion assigned or transferred. After such
notice and the receipt of such consent, the assignor shall have no further obligations or liabilities
hereunder. The City Manager may act on behalf of City regarding any actions concerning the
assignment of this Agreement.
9.2. Notices. Any notice shall be in writing and given by delivering the same in person
or by sending the same by registered, or certified mail, return receipt requested, with postage
prepaid, or by overnight delivery, to the respective mailing addresses, as follows:
If to City: City of Lake Elsinore
130 S. Main Street
Lake Elsinore, CA 92530
Attn: City Manager
If to Developer: Medcare Farms 2.0, LLC
29395 Hunco Way, Building A
Lake Elsinore, CA 92530
Attn: Kelly Heslop
•
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DOC#2020-0429783 Page 19 of 29
_l Either City or Developer may change its mailing address at any time by giving written
notice of such change to the other in the manner provided herein at least ten (10) days prior to
the date such change is effected. All notices under this Agreement shall be deemed given,
received, made or communicated on the earlier of the date personal delivery is effected or on the
delivery date or attempted delivery date shown on the return receipt, or air bill.
9.3. Governing Law and Venue. This Agreement shall be interpreted and governed
according to the laws of the State of California. In the event of litigation between the Parties,
venue, without exception, shall be in the Riverside County Superior Court of the State of
California. If, and only if, applicable law requires that all or part of any such litigation be tried
exclusively in federal court, venue, without exception, shall be in the Central District of
California located in the City of Riverside, California.
9.4. Severability. If this Agreement in its entirety is determined by a court to be
invalid or unenforceable, this Agreement shall automatically terminate as of the date of final
entry of judgment. If any term or provision of this Agreement shall be determined by a court to
be invalid and unenforceable, or if any term or provision of this Agreement is rendered invalid or
unenforceable according to the terms of any federal or state statute, any provisions that are not
invalid or unenforceable shall continue in full force and effect and shall be construed to give
effect to the intent of this Agreement. The Parties expressly agree that each Party is strictly
prohibited from failing to perform any and all obligations under this Agreement on the basis that
this Agreement is invalid, unenforceable, or illegal. By entering into this Agreement, each Party
disclaims any right to tender an affirmative defense in any arbitration or court of competent
jurisdiction, that performance under this Agreement is not required because the Agreement is
invalid, unenforceable, or illegal.
9.5. Constructive Notice and Acceptance. Every person who after the Effective Date
and recording of this Agreement owns or acquires any right, title, or interest to any portion of the
Site is and shall be conclusively deemed to have consented and agreed to every provision
contained herein, whether or not any reference to this Agreement is contained in the instrument
by which such person acquired an interest in the Site, and all rights and interests of such person
in the Site shall be subject to the terms,requirements, and provisions of this Agreement.
9.6. Reserved.
9.7. Waiver. A waiver by any Party of any breach of any term, covenant, or condition
herein contained or a waiver of any right or remedy of such Party available hereunder, at law or
in equity, shall not be deemed to be a waiver of any subsequent breach of the same or any other
term, covenant, or condition herein contained or of any continued or subsequent right to the same
right or remedy. No Party shall be deemed to have made any such waiver unless it is in writing
and signed by the Party so waiving.
9.8. Integration. This Agreement, together with its specific references, attachments,
and Exhibits, constitutes all of the agreements, understandings, representations, conditions,
warranties, and covenants made by and between the Parties hereto. Unless set forth herein, no
Party to this Agreement shall be liable for any representations made, express or implied.
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DOC#2020-0429783 Page 20 of 29
9.9. Captions. The captions of this Agreement are for convenience and reference only
and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the
interpretation, construction, or meaning of the provisions of this Agreement.
9.10. Mandatory and Permissive. "Shall" and "will" and "agrees" are mandatory.
"May"or"can" are permissive.
9.11. Counterparts. This Agreement may be executed simultaneously and in several
counterparts, each of which shall be deemed an original, but which together shall constitute one
and the same instrument.
9.12. Other Documents. The Parties agree that they shall cooperate in good faith to
accomplish the objectives of this Agreement and, to that end, agree to execute and deliver such
other instruments or documents as may be necessary and convenient to fulfill the purposes and
intentions of this Agreement.
9.13. Authority. All Parties to this Agreement warrant and represent that they have the
power and authority to enter into this Agreement.
9.14. Advice of Legal Counsel. Each Party acknowledges that it has reviewed this
Agreement with its own legal counsel and, based upon the advice of that counsel, freely entered
into this Agreement.
9.15. Attorneys' Fees and Costs. Unless otherwise provided in this Agreement, if any
action at law or in equity, including action for declaratory relief, is brought to enforce or interpret
provisions of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees
and costs, which may be set by the court in the same action or in a separate action brought for
that purpose, in addition to any other relief to which such Party may be entitled.
9.16. Calculation of Time Period. All time referenced in this Agreement shall be
calendar days, unless the last day falls on a legal holiday, Saturday, or Sunday, in which case the
last day shall be the next business day.
9.17. Recordation of Development Agreement. The City Clerk shall cause a copy of
this Agreement to be recorded against title of the Site within ten (10) business days of the
Effective Date.
[SIGNATURES ON NEXT PAGE)
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DOC#2020-0429783 Page 21 of 29
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set
forth below.
"CITY"
CITY OF LAKE ELSINORE,
a municipal corporation
10 Date: By:
Mayo
ATTEST:
By:
r
M"le OC�uf y Ci{r �(rf(C
"DEVELOPER"
MEDCARE FARMS 2.0, LLC,
a California limited liability company
Date:— it �O �g By:_ 1� a� Hcgqp -
Kelly Heslop, anager
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DOC#2020-0429783 Page 22 of 29
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
STATE OF CALIFORNIA )
County of
On KGy . 20,, 26(2E, , before me, 3 M)Mo f lien se n a
Notary Public,personally appeared 1�ell k M slap who proved to me on
the basis of satisfactory evidence to be the persons) whose name4)- is/W subscribed to the
within instrument and acknowledged to me that he/she/1 e 3xecuted the same in his/her it
authorized capacity(i@s•), and that by his/herk�ignature*on the instrument the person(&), or
the entity upon behalf of which the person�W�acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct
J.M.MORTENSEN- j
WITNESS my hand and official seal. c COMM. #2209099 A
Notary Public California c
= Riverside County
^ -- Comm.Expires Au .22.2021
Signature of Notary
(Affix seal here)
•
DOC#2020-0429783 Page 23 of 29
EXHIBIT A
LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore,
State of California, and is described as follows:
PARCEL 4 OF PARCEL MAPS NO. 29996, IN THE CITY OF LAKE
ELSINORE, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER
MAP RECORDED IN BOOK 215 PAGES 30 AND 31 OF PARCEL MAPS IN
THE CITY OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 377-120-043
Exhibit A
DOC#2020-0429783 Page 24 of 29
EXHIBIT B
SITE PLAN
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DOC#2020-0429783 Page 26 of 29
l Exhibit C
Floor Plan
The floor plan exhibit for this Development Agreement is on file as a public record and available
for review at the City of Lake Elsinore's City Clerk's Office located 130 South Main Street Lake
Elsinore, CA 92530.
•
DOC#2020-0429783 Page 27 of 29
EXHIBIT D
PROPERTY OWNER CONSENT
[On Following Page]
•
DOC#2020-0429783 Page 28 of 29
PROPERTY OWNER/LANDLORD AUTHORIZATION FOR INSPECTION
AND RIGHT TO OPERATE A COMMERCIAL CANNABIS OPERATION
1, Pasadena Industrial Park,LLC . am the landlord of real property located at 29395 Hunco Way,
Building A,Lake Elsinore,CA 92530.
1 authorize the commercial cannabis business entitled Medcare Farms 2.0,LLC,to operate a
commercial recreational cannabis business at the property—as permitted by the City of Lake Elsinore—
for the specific uses of:cultivation,distribution,processing,manufacturing, sales and dispensing of
cannabis,cannabis products,and cannabis related products,and allow the City of Lake Elsinore to enter
the property for inspection of the property.
1 declare under penalty of perjury that the foregoing information is true and correct.
Executed this 13 day of April 2018.
Pasad is I idustrial Park,LLC
By: Jaimee Natzke
Its: Controller/Property Manager
DOC#2020-0429783 Page 29 of 29
f � r
California All-1'ulroose- GerlEiff.catte-of a.ak_noWledgment
A notary public or other officer completing this certificate verifies only the identity of the Individual who signed the
document to which this certificate is attached.,and not the truthfulness, accuracy,or validity of that docurnehl.
State of California
County of Riverside S.S.
(�I C /3 //� Notary Public
On before me,
None of Notary Pubrv.,TWO
personally appeared_ "~' — AJ.4 7 �r -
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who proved to me on the basis of satisfactory evidence to be the person(4yvh•se name(s)
is/�Fe subscribe to.the within instrument and acknowledged tom gat h /sh_,plt executed
the same in hi he jlli it authorized capacity(i� and that by hi!=eir signature(�f on the ;
Instrument the person), or the entity upon behalf of which the peison(%o acted, executed the
instrument. ;
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph Is ROCHEL OG
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true and correct. � tk j" q NOTARY uu.� 2183815 PUBIIC•GUFOftAtA �1
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The preceding Certificate of Acknowledgment is attached to a Method of Signer Identification
document titled/for the purpose of_ Proved to me on the basis or sallaractory evidence:
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